A structured forward transaction which is automatically terminated if a prespecified cancellation trigger is broken through by the spot price over the tenure of the forward. Furthermore, if the spot price has never breached a preset knock-in threshold over the life of the forward, the position would raise no downside liabilities on the part of its holder. The knock-in cancellation forward is synthetically a combination of a cancellation forward contract and a knock-in forward contract.
March 10, 2023
