Barrier Price

Barrier Price

The price at which a barrier option becomes active or inactive. A knock-in barrier option may not be exercised unless the price of the underlying asset reaches the barrier price, which is stated in the contract. For example, a contract may have a strike price of $35, but it may only be exercised if the spot price of the underlying asset falls below $40 at some point during the life of the option. On the other hand, a knock-out barrier option with a strike price of $35 may expire automatically if the price rises above $40. In both cases, the barrier price is $40.
References in periodicals archive ?
One can easily calculated the leverage on one's own: turbo warrants have a strike price and a barrier price.
price trades below the barrier price within specified time frames
trades above the barrier price within specified time frames.
gold price trades above the barrier price within specified time
A down and out option will expire early if the gold price trades below the barrier price within specified time frames whereas an up and out option will expire early if the gold price trades above the barrier price within specified time frames.
whereas a down and in option will come into existence if the gold price trades below the barrier price within specified time frames.