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GlossaryProducts & contracts

Knock-in option

An option that becomes effective only after a specified barrier is reached.

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Do not confuse

Common comparison error

A knock-in barrier activates the option; reaching it is not necessarily the final winning condition or immediate cash payment.

Practical use

How to verify Knock-in option

Read Knock-in option together with Knock-out option, Double no-touch option, Double one-touch option. The comparison must preserve the exact rule, value, state, and evidence described below.

A neutral example

A knock-in option starts inactive and becomes operative only when the named source reaches 105 during the observation window. If the barrier never triggers, the later favorable final price does not activate the payoff.

Evidence path

Where to verify Knock-in option

Use the source that governs the exact contract, account, entity, or platform state. A general definition cannot replace current broker terms.

Broker contract specificationConfirm the outcome condition, strike or barrier, observation window, expiry, payout, tie rule, and settlement record for the exact product.
CFTC binary options resourcesReview product-risk and fraud explanations published by the U.S. derivatives regulator.Open source