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Related Definitions
Electronic money (e-money) Electronic money (e-money) is the money that exists only in electronic form and substitutes for cash as well.
Out-of-the-money (OTM) Out-of-the-money (OTM) is an option that would not be profitable, excluding the cost of the premium, if exercised immediately.
In-the-money (ITM) In-the-money (ITM) refers to a term describing an option that would profitable, excluding the price of the premium, if exercised immediately.
At-the-money (ATM) At-the-money (ATM) is a term that describes an option whose exercise price is the same as the same as the spot price of the underlying currency.
At-The-Money, In-The-Money & Out-of-The-Money An option whose exercise price is the same as the spot price of the underlying currency is said to be at-the-money (ATM).
An option that would be profitable ...
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