Options Glossary

Glossary: Barrier Options

Last Updated: July 12, 2015


Barrier Options

What Does Barrier Options Mean in Options Trading?

Barrier options are also considered to be 'exotic' since these options' profits depends on whether specific price points have been reached or have been exceeded.
A knock-out barrier option expires worthless if the underlying exceeds a predetermined price.
A knock-in barrier option has no value until the underlying reaches a predetermined price.

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