# Pivot TARF

{% hint style="info" %}
The Pivot TARF is a variation to the standard TARF.

\
The client will buy or sell EURUSD, determined by where EURUSD fixes with respect to the pivot level.  At or above the pivot, the client will sell EURUSD and below the pivot the client will buy EURUSD.\
\
The Knock-Out Event is triggered when the accumulated ITM Intrinsic Value is equal to or greater than the Knock-Out Amount.
{% endhint %}

### **Payoff Diagram:**

<figure><img src="/files/pfziUaZVkomBCBvvkzYE" alt=""><figcaption></figcaption></figure>

### **Payoff at Expiry:**

At expiry if EURUSD fixes:

* Above the (Put) High Strike, the client will find itself obligated to sell EUR / buy USD at the (Put) High Strike level on 200% of the Notional.
* Above the Pivot Level, but below the (Put) High Strike, the client is fully protected and can sell EUR / buy USD at the (Put) High Strike on 100% of the Notional subject to the target condition.  Once the target is reached the strategy is cancelled and the client will become unhedged.
* Below the Pivot Level, but above the (Call) Low Strike, the client is fully protected and can sell USD / buy EUR at the (Call) Low Strike on 100% of the Notional subject to the target condition.  Once the target is reached the strategy is cancelled and the client will become unhedged.
* Below the (Call) Low Strike, the client will find itself obligated to sell USD / buy EUR at the (Call) Low Strike level on 200% of the Notional.


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