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KNOWLEDGE BASE

GRAIN GLOSSARY

Get an overview of financial terms and their definitions.

A

A

B

B

C

C

D

D

E

E

F

F

G

G

I

I

K

K

L

L

M

M

N

N

O

O

P

P

R

R

S

S

T

T

V

V

Z

Z

K


Knock-in Option

A knock-in option is a type of option that becomes active or "knocks in" to the market only when the price of the underlying asset reaches a predetermined trigger price. Until the trigger price is reached, the option remains dormant and has no value.


Knock-out Option

A knock-out option is a type of option that becomes inactive or "knocks out" of the market when the price of the underlying asset reaches a predetermined trigger price. When the trigger price is reached, the option is automatically exercised, and the trader either receives a payout or incurs a loss, depending on the terms of the option.

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