Barrier Option

A type of option whose payoff depends on whether or not the underlying asset has reached or exceeded a predetermined price.


A barrier options are a type of exotic option. They can be either knock-ins or knock-outs.



Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.
Related Terms

Asset-or-Nothing Call

Asset-or-Nothing Put

Cash-or-Nothing Call

Cash-or-Nothing Put

Exotic Option

Knock-in Option

Knock-out Option

Option

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