Exotic options is a more complicated derivative security than traditional options (standard European or American options). These products are usually OTC or embedded structured bonds. For example, the exercise price is not a certain number, but an option with an average asset price over a period of time, or if the asset price exceeds a certain limit within the validity period of the option, the option is invalid.

1. barrier option: it means that the return of the option depends on whether the price of the underlying asset reaches a certain level (critical value) within a certain period of time, and this critical value is called the "barrier" level;

2. Asian option: It is one of the most active exotic options in the financial derivatives market. Its most important feature is that its maturity income depends on the average price of the underlying assets in a certain period (the whole option validity period or part of the option validity period). It is an option with strong path dependence, because this average price will become an independent state variable in the pricing formula;

3. Package option: a securities portfolio consisting of traditional European options, forward contracts, cash and basic assets;

4. Retroactive option: the return of retrospective option depends on the highest or lowest price (also called retrospective price) of the underlying asset in a certain period (called retrospective period), and this retrospective price is adopted according to the asset price or exercise price.

The yield to maturity depends not only on the basic index, but also on the value of several times during the contract period. In Asian options, yield to maturity depends on the average value; In the look-back option, the return to maturity depends on the maximum or minimum value; In the barrier option, if it reaches a certain level or fails to reach the basic level, the contract is terminated. There are also numerical options, range options and so on.

It can rely on more than one index. Such as basket options, Himalayan options and other mountain options, transcendence options and so on. Have the right to redeem and sell. Involving the foreign exchange market. Through different ways, such as exchange rate pegging and compound options.

Even products traded on the floor may have the characteristics of exotic options, such as convertible bonds (the value of which depends on the price and volatility of the underlying assets, credit rating, interest rate level and volatility and the correlation of these factors).