Barrier option is a contract which grants the holder the right, but not the obligation, to buy (Call Option) or sell (Put Option) a specific amount of one currency against payment of the agreed amount in another currency with settlement at a predetermined time in future. This right may only be exercised if the option is knocked-in or knocked-out and the buyer of the option pays a premium for it.
An option buyer has an unlimited opportunity to participate in the favourable market development.
Lower costs (premium) compared to the currency option.
Binary currency options are transactions in which sellers grant buyers the right to acquire the agreed amount (so-called payout) at the predetermined time, unless the agreed rate is reached (or, on the contrary, once the agreed rate is reached). For this right, a premium is paid to the broker. Binary options are generally used as a part of option strategies or other types of combined products.
The buyer of the option knows the eventual payout amount in advance.
A premium is paid by the buyer for the above option.