A barrier spread is an options strategy that involves buying or selling an option with a predetermined "barrier" price, and then buying or selling another option with the same expiration date but a different strike price. The barrier price is a predetermined price level that must be reached or breached for the options to become activated. If the underlying asset price never reaches or crosses the barrier price, the options will expire worthless and the trader will lose the premium paid for the options. Barrier spreads are often used to hedge against potential price movements in the underlying asset, or to speculate on the likelihood of the asset reaching a certain price level. Barrier spreads can be constructed using call options, put options, or a combination of both, and can be used with stocks, index options, and other types of options.