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What does 'ITM' stand for in the world of cryptocurrency?

avatarChendoDec 25, 2021 · 3 years ago1 answers

In the world of cryptocurrency, what does the abbreviation 'ITM' stand for? I've come across this term multiple times but I'm not sure what it means. Can someone explain its significance and usage in the crypto industry?

What does 'ITM' stand for in the world of cryptocurrency?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    ITM, which stands for 'In The Money', is a term commonly used in the cryptocurrency industry. It refers to a situation where the current price of a cryptocurrency is higher than the strike price of an option contract. This indicates that the option has intrinsic value and can be exercised for a profit. ITM options are sought after by traders as they offer the opportunity to make a profit without relying solely on the price movement of the underlying asset. It is important to note that ITM options typically have a higher premium compared to options that are out of the money or at the money.