What's new

Gap options versus barrier options.

Thread starter #1
Hi guys

Can someone please clarify the difference between a barrier options and a gap option exactly? A gap is an option that gets exercised at 1 strike but its payoff is based on another strike. This sounds very similar to a barrier option which becomes activated on 1 barrier but its payoff is based on the actual strike rate. I can't distinguish between the 2. Read through the bionic turtle notes and I'm still confused. Any help would be appreciated .Thank you so much!
 
Top