KNOCK-IN

KNOCK-IN 

The knock-in option method is when the underlying product must trade at a specific price before a previously purchased option becomes active. Knock-ins lower the premium expenses of the underlying option. It can also initiate hedging operations after the execution of the option.

There are two types of knock-in options: down-and-in and up-and-in. Knock-in options are one of the two main types of barrier options.