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how to calculate corelation between FX and barrier options prices


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We know that barrier option move/reflect like fx prices.
Let say we enter EURUSD market in barrier option when fx price is 1.1200
then we want to place a stop in barrier option that would be equivalent as having a stop in fx of lest say 50 pips.
how do we calculate the barrier option price for that stop?

Thank you.

Claude

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The Barrier price is the distance between IG’s underlying price and the knock out level + premium. For example as below, the market is 28725 and the KO is 27000 (which is a difference of 1275). The KO premium is 10, so the price is 1285.

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In your example the barrier price is the 50 points plus whatever the KO premium is. 

If you fill in a deal ticket, the premium and price should auto populate. 

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