BINARY-BARRIER OPTION

A hybrid of the BARRIER OPTION and BINARY OPTION that grants the buyer a payoff equal to a fixed cash or ASSET amount if the price of the UNDERLYING market reference breaches the BARRIER. Payoff may be immediate or at expiry of the contract. Also known as an AMERICAN BINARY OPTION, ONETOUCH OPTION. See also ASSETAT EXPIRY OPTION, ASSETATHIT OPTION, ATEXPIRY OPTION, ATHIT OPTION, CASHATHIT OPTION, CASHATEXPIRY OPTION.

More On This Topic



Link to This Definition
Did you find this definition of BINARY-BARRIER OPTION helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary