Barrier Option?
 

There are two main variations of barrier options, ‘in’ and ‘out’ options. ‘In’ options are initially inactive, that is to say that the investor initially has no rights on the underlying share, so the option is, in effect, worthless. When the underlying share reaches the price specified in the barrier option formula, then the option activates. If the underlying share never reaches the specified price during the life of the option, then it expires with no value.I used this option while trading under www.alpari.com

Binary option is a type of option whose payoff system depends on whether or not the underlying asset has reached to a predetermined price. A barrier option can be a knock-out, if the underlying exceeds a certain price, limiting profits for the holder but limiting losses for the writer. It can also be a knock-in, meaning it has no value until the underlying reaches a certain price.

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A barrier option is an exotic option which is on an underlying asset whose existence totally depends upon the underlying asset's price reaching pre-set barrier level its derivative either springs into existence or, if the only option already exists, it is extinguished.

Thanks for sharing this useful information.

Thanks for sharing this useful information.

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