# Cliquet Option

*Derivatives & Options — Finicade finance glossary*

A cliquet option is a series of forward-starting options that lock in gains at set intervals, resetting the strike each time — a ratchet.

A series of forward-starting options that lock in gains at set intervals, resetting the strike each time — a 'ratchet' that banks realised profits so they can't be given back. Popular in principal-protected structures.

**Also known as:** ratchet option, forward start option

**Related terms:** [Principal Protection](https://finicade.com/glossary/principal-protection), [Exotic Option](https://finicade.com/glossary/exotic-options), [Structured Product](https://finicade.com/glossary/structured-product)

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