Structured Products

Knock-In Option

Definition

What is Knock-In Option?

A barrier option that comes into existence only after the barrier is reached.

Example in practice

The downside protection changes after the index knocks in.

Keep learning

An investment combining debt and derivatives to create a defined payoff.

A structured debt instrument designed to return some or all principal at maturity, subject to issuer credit and terms.

A structured note whose principal may be reduced if specified market conditions occur.

A statistical measure tracking the performance of a defined group of securities or assets.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.