Updated Apr 14, What is a Knock-In Option A knock-in option is a опцион knock in option contract that begins to function as a normal option "knocks in" only once a certain price level is reached before expiration. Basics of a Knock-In Option Knock-in options are one of the two main types of barrier options, with the other type being knock-out options. A knock-in option is a type of contract that is not an option until a certain price is met.
So if the price is never reached, it is as if the contract never existed. However, if the underlying asset reaches a specified barrier, the knock-in option comes into existence.
The difference between a knock-in and knock-out option is that a knock-in option comes into existence only when the underlying security reaches a barrier, while a knock-out option ceases to exist when the underlying security reaches a barrier. A trader may choose the cheaper relative to a comparable vanilla barrier option if they feel it is quite likely опцион knock in knock in underlying will hit the barrier.
There are two types of knock-in options: down-and-in and up-and-in.
It is this right that gives the option value. Compare Accounts.