Trade Knockout Options
Knockout Options are an innovative and simple way to trade major FX, indices and commodities markets, offering flexible margin, limited risk and guaranteed protection.
Knockout Options explained
What are Knockout Options?
Knockout Options are options trades with a unique feature whereby the price moves one-for-one with the underlying City Index market. Knockouts are also known as barrier options, as once the Knockout level is reached, your trade is guaranteed to close at that price.
Learn more about what Knockout Options are
Enjoy greater flexibility and control
Select your margin, maximum risk tolerance and Knockout level – and choose between an UP KO and DOWN KO to trade rising or falling markets.
Limit your risk
Trade with confidence knowing that your potential gains are unlimited, but losses will not exceed margin.
Award-winning since 1983
Find out more about Knockout Options
Learn how to trade Knockouts with illustrated examples, comparison tables and other key information about barrier options.
Knockout Options FAQs
Are Knockouts barrier options?
Yes, Knockouts are a type of barrier option, which are derivatives intended for short-term speculation. The outcome of a barrier option comes into effect if a predetermined price is met.
With Knockout Options, the buyer’s option becomes worthless and option writer receives a fixed payoff if the price of the underlying reaches the barrier level.
Learn what a Knockout Option is.
What is a barrier level?
A barrier level is the price at which the options contract outcome is executed. In the case of Knockout Options, the barrier level is the predetermined rate at which the position is closed, or ‘knocked out’. If it were a Knock-in Option, the barrier level is the price at which the position would be opened.
Learn more about how to trade Knockout Options.
How does Knockout Options pricing work?
Knockout Options pricing works on a one-for-one basis with the underlying market price. For every point the underlying market moves, the price of the Knockout Option moves by the same amount.
See our Knockout Options market information.