An option that is equipped with two European barriers and provides a fixed payoff. The market price (spot price) of the underlying asset is set against the two barriers on the option’s expiration date, for determination of the payoff amount and its payability. The two barrier form a range that define whether the underlying asset price should be within or outside this range on the expiration date. If the underlying price ends within or outside the set range, the fixed payout will be made on the option’s delivery date. Otherwise, not payment will be made, and the option expires worthless (the maximum loss would be the premium paid to the option’s seller).

This option represents a bet on the level of the underlying price on the option’s expiration date.