Deriv trade typesUpdated 3 min readBy the FXNOD team
Turbo options on Deriv: barriers, payout per point and knock-out
A turbo option pays according to how far the market finishes from a barrier, as long as the price never touches that barrier during the contract. The payout is the payout per point multiplied by the distance between the final price and the barrier. If the barrier is touched, the contract ends and the stake is lost.
Up and Down
| Type | Barrier is | Knocked out if | Pays on |
|---|---|---|---|
| Up | Below the price | The price falls to the barrier | How far the final price is above the barrier |
| Down | Above the price | The price rises to the barrier | How far the final price is below the barrier |
A worked example
Take an Up turbo with the barrier at 100.00, a payout per point of 20 and a stake of 10. If the price never falls to 100.00 and finishes at 100.50, the distance is 0.50 and the payout is 20 times 0.50, or 10. That returns the stake and no more. A finish at 101.00 pays 20, a profit of 10. A finish at 100.20 pays 4, a loss of 6. If the price touches 100.00 at any time, the 10 is gone.
Deriv puts it this way: you earn a profit only if the payout is higher than your initial stake. Surviving is not enough. The price has to finish far enough from the barrier.
The trade-off in choosing a barrier
- A barrier close to the price gives a higher payout per point and is knocked out easily.
- A barrier far from the price is harder to touch and pays less per point.
- The stake buys a fixed exposure either way. The barrier decides how fragile it is.
Selling early
Deriv says a turbo can be sold before expiry, up to 15 seconds before the end, except on tick-based durations. Selling early locks in whatever the contract is worth at that moment.
Who it suits
Turbos reward a strong move in one direction and punish any sharp move the other way. They are a poor fit for someone still learning how a contract settles. Learn Rise/Fall first, and try turbos on a demo account until the payout formula is second nature.
In FXNOD
Turbos are in Trade Pilot and are a trade type a Bot Forge bot can buy. The order panel shows the quote for the settings you chose before you buy.
Questions people ask
- What is payout per point?
- Deriv's glossary describes it as your profit or loss for each point the underlying market moves. Multiply it by the distance between the final price and the barrier to get the payout.
- What happens when a turbo's barrier is touched?
- The contract is terminated early and, according to Deriv's terms, the stake is lost without any payment.
- Can a turbo finish in profit and still lose money?
- It can pay something and still return less than the stake. Profit needs the payout to exceed the stake.
Try this contract on demo
Every trade type in these guides is in Trade Pilot, and a bot in Bot Forge can buy it. Read the quoted payout and try it with Deriv's virtual funds.
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