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In-the-money is a term used in options trading to describe an options contract that has crossed its strike price. It is contrasted with out-of-the-money options which have not, and at-the-money options, which are very close to the strike price. An in the money option will not expire worthless, as the user will have the right to buy the underlying asset for less than the market price. By contrast, an out of the money option gives the holder the (useless) right to buy an underlying at more than the market price. Options contracts may have any underlying – forex, equities or commodities.
This status of the option, sometimes referred to with the ungainly word ‘moneyness’, is what determines its value. Options prices increase as the underlying approaches the strike price, then stabilise as they move further and further into the money. This is because the chance of a reversal decreases the further in the money it goes. In the money does not have a particular direction, as a put option will be in the money when the asset price is below the strike price, it simply refers to whether the strike price has been exceeded in the direction of the contract.
ADSS offers a range of global markets for traders, with CFD opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.
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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities L.L.C – S.P.C (“ADSS”), a limited liability company – sole proprietorship company incorporated under United Arab Emirates law. Registered under Commercial License No.1190047. ADS Securities L.L.C S.P.C is regulated and authorised in the UAE by the Capital Market Authority (CMA) under Category 1 License No.305027 (Trading Broker, Trading and Clearing Broker, Trading Broker in the International Markets, Trading Broker of OTC Derivatives and Currencies in the Spot Market, Financial Products Dealer) and Category 5 License No.20200000217 (Introduction). Registered Office: 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
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