# Asian Option

*Derivatives & Options — Finicade finance glossary*

An option whose payoff depends on the average price over its life, not just the price at expiry. Averaging smooths out spikes and makes it cheaper — popular for hedging commodities and currencies.

**Also known as:** asian

**Related terms:** [Exotic Option](https://finicade.com/glossary/exotic-options), [Path Dependence](https://finicade.com/glossary/path-dependence), [Option](https://finicade.com/glossary/option)

**Taught in:** Hull Street — Exotic Options

Source: https://finicade.com/glossary/asian-option