Common comparison error
Similar barrier names do not establish identical Knock out option payoff, window, frequency, refund, or Double no touch option.
GlossaryProducts & contracts
Knock-out option
An option that terminates or loses effect when a specified barrier is reached.
Practical use
How to verify Knock-out option
Read Knock-out option together with Knock-in 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
Two levels in Knock out option sit at unequal distances from spot. Tickets retain distance, time, payout, and Knock in option so the geometry remains comparable. The scenario is specific to Knock out option: reaching the termination barrier can extinguish the option before the final market direction is known.
Evidence path
Where to verify Knock-out option
Use the source that governs the exact contract, account, entity, or platform state. A general definition cannot replace current broker terms.