Barrier Options
The importance of this section is not to understand barrier options, how to trade those options, and price methodologies. Rather it's important to know where barriers are located within spot currency prices to determine if a break or bounce will occur at a particular price once a barrier is reached.
Importers, exporters, and major companies routinely employ barrier options to facilitate trade across borders. For example, Canadians employ barrier options to facilitate oil flows and other trade to U.S. markets, its largest export partner. Japanese exporters routinely employ barrier options to facilitate a multitude of trade in various products to various world destinations.
A multitude of barrier options can routinely be found within ...
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