Barriers

Out-of-the-money Knock-Out
This is a standard option that automatically cancels out if spot trades through a prearranged knock-out level. This level is set below the initial spot for a call option, and above spot for a put.

In-the-money Knock-Out
This is a standard option that automatically cancels out if spot trades through a prearranged knock-out level. This level is set above the initial spot for a call option, and below spot for a put.

Double Knock-Out
This is a standard option that automatically cancels out if spot trades through either one of two predetermined knock-out levels. One of the knock-out levels is set above the initial spot and the other one is set below spot, therefore you have both out-of-the money and an in-the-money knock-out with these options.

Out-of-the-money Knock-In
This is a standard option than can only be used upon expiry providing that spot has earlier traded through a prearranged knock-in level. This level is set below the initial spot for a call option and above spot for a put.

In-the-money Knock-In
This is a standard option that can only be exercised upon expiration provided that spot has previously traded through a predetermined knock-in level. This level is set above the initial spot for a call option and below spot for a put.

Knock-in/Knock out
This is a standard option that automatically cancels out if spot trades through a predetermined knock-out level and, in addition, can only be used upon expiry providing that spot has beforehand traded through a prearranged knock-in level. The knock-out level is set below the initial spot for a call option and above spot for a put. The knock-in is set above spot for a call and below spot for a put.