A structured instrument which consists of long put and short call positions particularly in currencies. A KIKO (knock-in knock-out) forward allows the holder to sell a specific currency (e.g., dollar) at a preset exchange rate (i.e. the exercise price of options) when the exchange rate moves within a prespecified range, or lower and upper barriers.

Investors using this structure can tailor-make it in a way that meets their needs and requirements. That means they can choose the barriers, the exercise price, the nominal amounts of the put and call options, and the expiration date.