# TARF

{% hint style="info" %}
The Target Forward is the most basic of the "Target" family of forwards, aimed at providing the client with better-than-market outright hedging rates.

The client will be able to sell EURUSD on a monthly basis at a very attractive strike rate until the Knock-Out Event is triggered.

The Knock-Out Event is triggered when the accumulated Monthly ITM Intrinsic Value is equal to or greater than the Knock-Out Amount.
{% endhint %}

### **Payoff Diagram:**

<figure><img src="/files/MhBe0gpYH2UAVsktbC01" alt=""><figcaption></figcaption></figure>

### **Payoff at Expiry:**

At expiry if EURUSD fixes:

* Above the Strike, the client is fully protected at the 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 Strike, the client will find itself obligated to trade at the Strike level on 200% of the Notional.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://eako-capital.gitbook.io/eako-user-guide/tarf.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.