An option on an option which is made up of a strip of European digital or binary options. In this type of option, a fixed payout is made on the delivery date in the holder’s base currency when the spot exchange rate is at a pre-determined level on specific dates (or fixings). That level could be defined to be above or below a given exchange rate, or within a specified range of exchange rates. Each date or fixing marks the expiration date of one of the digital options underlying the floater option.

This option is also known as an accrual option.