In The Money – ITM trades

In-The-Money is being defined by Investopedia as:

1. For a call option, when the option’s strike price is below the market price of the underlying asset.

2. For a put option, when the strike price is above the market price of the underlying asset.

So, in our case of retail traders, In-The-Money basically mean you are right about the trade direction and you win that trade, therefore you’ll get a certain percentage of your initial investment. Congratulation.

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Posted by broker review
October 17, 2012 at 4:50 pm

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Author: David Wilson