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Knock-Outs

Knock-Outs

What are knock-outs?

Knock-outs are a CFD trade on an option. They can only be bought to open, which means that they cannot be sold to open. There are two types of knock-out available: bull and bear.

  • You’d buy a bull knock-out if you believe the price of the underlying market will rise
  • You’d buy a bear knock-out if you believe the price of the underlying market will fall
Knock-Outs

What are the characteristics of Knock-outs?

Knock-outs move one-for-one with the underlying market – meaning that for every point the underlying moves, the price of the knock-out moves the same amount.1

You can close your position at any time before expiry – unless the knock-out level is reached, in which case the position will be automatically closed.

1This is not the case when the knock-out premium changes. If the knock-out premium changes, the price of the knock-out will move by the amount the premium changes.

On which markets can I trade knock-outs?

Knock-outs trading provider IG offers this product across a range of popular markets 24 hours a day, including:

  • Major forex pairs
  • Global stock indices
  • Commodities

Read More Details on IG KO Page