Barrier Option

Definition

A family of path dependent options whose pay-off pattern and survival to the expiration date depend not only on the final price of the underlying currency but also on whether or not the underlying currency breaks a predetermined price level at any time during the life of the option. See Down and Out call/put, Down and in call/put, Up and out call/put, Up and in call/put.

Forex Word of the day

ISDA (International Securities Dealers Association
Organization which foreign currency exchange banks have formed to regulate inter-bank markets and exchanges.
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