Web Trader MT5
The trigger price on a barrier option. It’s the line that, when crossed, changes everything about the contract; either bringing the option into existence or wiping it out, depending on the type.
You’ll see two flavours. Knock-in barriers create the option only if the underlying touches the level. Knock-out barriers do the opposite: the option exists from day one, but evaporates the moment the underlying touches the barrier. In both cases, the barrier itself is set relative to the spot price at issuance, often as a percentage above or below.
How the barrier is monitored matters too. Continuous monitoring means every tick counts; a single touch ends it. Discrete monitoring means the barrier is checked only at specific times (daily closes, for instance), which is a meaningfully different (and cheaper) product.
Example: A three-month knock-out call on Apple, struck at $180, with a barrier at $220. Apple closes at $195 the day before expiry. Option is alive, exercises in the money. But if Apple had spiked to $221 intraday at any point during those three months and continuous monitoring applied, the option would already be dead and worthless.
