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GlossaryPricing & settlement

Barrier distance

The absolute or percentage distance from the current reference price to a touch or boundary level. A larger distance can help explain a higher advertised payout.

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Direct answer

Where this term appears

Look for this term around the chart, strike or barrier controls, payout display, order confirmation, result history, or contract specification. The recorded value should be understandable before an order is confirmed.

Use the definition above together with the exact value, condition, timestamp, account, product, or payment context shown by the broker.

Do not confuse

How Barrier distance differs from related terms

Barrier distance is often researched beside Strike distance and Spot price and Entry price. The labels can appear in the same workflow, but they do not describe the same field or condition.

01
Strike distance

The absolute or percentage difference between the current reference price and the selected strike. It helps compare strike-selectable digital-option payouts.

02
Spot price

The current quoted level of the referenced market instrument. It provides context for measuring strike or barrier distance.

03
Entry price

The reference level recorded when a broker accepts a contract, distinct from any indicative price shown before submission.

Practical use

Connect every displayed price to its source and timestamp

Barrier distance means the absolute or percentage distance from the current reference price to a touch or boundary level. A larger distance can help explain a higher advertised payout. Chart, entry, strike, barrier, and settlement values can come from different steps in the workflow. A price is auditable only when the instrument, source, quote side, timestamp, precision, and correction policy are known.

A neutral example

Capture the value before confirmation, the accepted entry or reference tick, the final settlement value, and an external reference at the same UTC time. Explain expected spread or methodology differences instead of demanding identical pixels.

01
Source

Named venue, provider, benchmark, or documented proprietary calculation.

02
Timestamp and side

UTC time, bid, ask, midpoint, last trade, mark, or another stated basis.

03
Exceptions

Missing ticks, filtered quotes, outages, fallback source, rounding, and correction process.

In a broker review

How to use Barrier distance in a comparison

In a broker review, do not read Barrier distance in isolation. Match the broker's own definition to the relevant contract, account, pricing, payment, or platform screen and record the condition that changes its meaning.

Comparison context

Why it matters when comparing brokers

How to use this term

Pricing and settlement terms determine what the platform records, when the result is evaluated, and how the return is calculated. Small differences can change whether two displayed offers are genuinely comparable.

What it does not prove

A high displayed percentage or precise chart does not by itself establish a fair settlement process. The source, timestamp, quote side, cutoff, and exception rules still matter.

Broker checklist

What to verify

Check these points on the broker's product screen, account flow, terms, or help pages.

01
Displayed basis

Check whether the figure is gross return, net profit, refund, or another calculation.

02
Timestamp

Compare entry, cutoff, observation, and settlement times using the same time basis.

03
Price rule

Confirm whether bid, ask, midpoint, last price, or another quote determines the result.

04
Exceptions

Read tie, void, rejection, requote, outage, and correction rules.

Quick answers

Common questions

Short answers for users comparing binary options brokers and account conditions.

What is Barrier distance commonly compared with?

Barrier distance is commonly compared with Strike distance. Strike distance means: The absolute or percentage difference between the current reference price and the selected strike. It helps compare strike-selectable digital-option payouts.

Why does this term matter when comparing brokers?

Pricing and settlement terms determine what the platform records, when the result is evaluated, and how the return is calculated. Small differences can change whether two displayed offers are genuinely comparable.

What should I check when comparing this feature?

A high displayed percentage or precise chart does not by itself establish a fair settlement process. The source, timestamp, quote side, cutoff, and exception rules still matter. Check the broker's definition, applicable terms, and account or product screen before relying on the label.