In relation to autocalls or autocallable products, it is a certain percentage of the underlying’s initial spot as defined at inception. For example, if the autocall barrier is set to 150% and the initial spot of the underlying was 1000, the autocall trigger will be 150% of 1000, i.e., 1500.

If on a coupon observation date, the autocall barrier, European or continuously monitored,  will be used as a yardstick to which the underlying price is monitored. If on that date the underlying trades at or above the autocall barrier, the product is then automatically redeemed at a pre-specified amount, and the holder receives the principal back.

The payout when the autocall barrier is breached is calculated as:

Payout = 100% + coupon

Payment of the principal (100%) will depend on the definition of payment time: immediate on the autocall barrier being breached/ hit, or exclusively on the next coupon payment date after the autocall barrier is breached.