Out Of The Money- OTM trade

Out of The Money or OMT trade is defined as follow by investopedia

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

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

So, basically, it’s a losing trade where you’ll lose money on your investment. There are some Binary Options brokers who offer small return for Out-Of-The-Money trades, typically a few % up to 15%.

Related Posts Plugin for WordPress, Blogger...

Pin It

Leave a Comment

Author: David Wilson