What does KIKO mean in Unclassified?

KIKO

KIKO (Kick In Kick Out) is a term used in certain financial transactions, particularly in the foreign exchange market. It refers to a type of option contract where one party has the right to kick in or trigger the option at a specific level, while the other party has the right to kick out or cancel the option at a different level. The specific levels, also known as the knockout and knock-in barriers, are predetermined and specified in the contract. Once the price of the underlying asset reaches or crosses these levels, the option is either activated or terminated, depending on the direction of the market movement. KIKO options are often used to hedge against currency exchange rate risks.

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