What does OTM stand for in the context of cryptocurrency trading?

3 answers

• Jan 13, 2022 · 3 years ago
  OTM stands for 'Out of The Money' in the context of cryptocurrency trading. It refers to an option contract that has no intrinsic value because the current market price is unfavorable for the option holder. In other words, if an option is OTM, exercising it would result in a loss for the holder. Traders often use this term to assess the profitability and risk of their options positions.
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• Jan 13, 2022 · 3 years ago
  OTM, short for 'Out of The Money,' is a term commonly used in cryptocurrency trading. It describes an option that has a strike price that is higher for call options or lower for put options than the current market price. OTM options have no intrinsic value and are considered less desirable compared to in-the-money (ITM) or at-the-money (ATM) options. Traders often analyze the OTM percentage in their options portfolio to evaluate risk and potential returns.
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• Jan 13, 2022 · 3 years ago
  In cryptocurrency trading, OTM stands for 'Out of The Money.' It's a term used to describe an option that has a strike price that is unfavorable compared to the current market price. When an option is OTM, it means that exercising the option would result in a loss for the holder. Traders closely monitor the OTM options in their portfolio to manage risk and make informed trading decisions. Remember, options trading involves significant risks, and it's essential to understand the terminology to navigate the market effectively.
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