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Define: Barrier Options



Barrier Options are options that activates or deactivates when certain minimum price or maximum price is reached by the underlying stock and are usually traded in OTC market.

There are 4 types of Barrier Options; Up-and-In (activates only when stock goes up and over a certain price). Up-and-Out (deactivates when stock goes up and over a certain price). Down-and-In (activates when stock goes down and below a certain price). Down-and-out (deactivates when stock goes down and below a certain price).

Read the full tutorial on Barrier Options.