At the money definition (2024)

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

What is at the money?

At the money (ATM) is a term used to describe an options contract with a strike price that is identical to the underlying market price. At the money options see a lot of trading activity, because they are so close to becoming profitable.

At the money options have no intrinsic value and will incur a loss if exercised due to the premium paid for the option. However, ATM is the point at which the option will start to have an intrinsic value.

In options trading, there are three ways to describe an option’s ‘moneyness’: out of the money, at the money and in the money. When the price of the underlying asset in an option is equal to its strike price, it is at the money. If it has not yet reached that point, it is out of the money, and if it has exceeded it then is in the money. These terms apply to both call options and put options.

Learn how to trade options

Discover everything you need to know to start trading options.

Example of at the money

Let’s say a trader decides to buy a call option with a strike price of $12. Once the current market price is also $12, then the option is at the money. If it rises beyond this point the option will be in the money, as it now has a value, but if it falls it will be out of the money and cannot be exercised.

If the trader decides to buy a put option with a strike price of $12 instead, it would still be considered at the money if the market price was $12. However, it would only be in the money if the underlying asset’s price fell beyond this point, but if the market rose it would be out of the money.

Build your trading knowledge

Discover how to trade with IG Academy, using our series of interactive courses, webinars and seminars.

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

Contact us

Questions about opening an account: +44 (20) 7633 5430 or email: [email protected]

Existing client questions:
+44 (20) 7633 5431 or email: [email protected]

We’re here 24 hours a day, except from 6am to 4pm on Saturday (UTC+8).

Contact us

New clients: +44 (20) 7633 5430 or email [email protected]

Clients: Help & Support

WhatsApp: Click here to chat to us on our official WhatsApp channel, 10am to 7pm (UTC+10), Monday to FridayAt the money definition (1)

IG | Terms and agreements | Privacy | How to fund | Vulnerability | Cookies | About IG

^IG International Limited is part of the IG Group and its ultimate parent company is IG Group Holdings Plc. IG Group established in London in 1974, and is a constituent of the FTSE 250 index.

The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. 70% of retail client accounts lose money when trading CFDs, with this investment provider. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money.

CFD Accounts provided by IG International Limited. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority.

IG provides an execution-only service. The information in this site does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

The information on this site is not directed at residents of the United States and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

IG International Limited is part of the IG Group and its ultimate parent company is IG Group Holdings Plc. IG International Limited receives services from other members of the IG Group including IG Markets Limited.

At the money definition (2)

© 2003-2024

At the money definition (2024)
Top Articles
What Is a Year-End Bonus And Should You Expect One?
Sign-On Bonuses: The Reality of When and How to Use Them
My Arkansas Copa
Po Box 7250 Sioux Falls Sd
The Largest Banks - ​​How to Transfer Money With Only Card Number and CVV (2024)
Avonlea Havanese
Blanchard St Denis Funeral Home Obituaries
Tj Nails Victoria Tx
Obituary (Binghamton Press & Sun-Bulletin): Tully Area Historical Society
Words From Cactusi
Barstool Sports Gif
Acbl Homeport
Azeroth Pilot Reloaded - Addons - World of Warcraft
Bros Movie Wiki
Springfield Mo Craiglist
Love In The Air Ep 9 Eng Sub Dailymotion
Craftology East Peoria Il
Eva Mastromatteo Erie Pa
Mzinchaleft
Palm Coast Permits Online
NHS England » Winter and H2 priorities
Bj Alex Mangabuddy
Unity - Manual: Scene view navigation
Governor Brown Signs Legislation Supporting California Legislative Women's Caucus Priorities
Hampton University Ministers Conference Registration
Jordan Poyer Wiki
How to Make Ghee - How We Flourish
Walmart Pharmacy Near Me Open
Beaufort 72 Hour
Kirk Franklin Mother Debra Jones Age
Kroger Feed Login
4Oxfun
JVID Rina sauce set1
Marokko houdt honderden mensen tegen die illegaal grens met Spaanse stad Ceuta wilden oversteken
Publix Christmas Dinner 2022
Craftsman Yt3000 Oil Capacity
Kamzz Llc
4083519708
Mckinley rugzak - Mode accessoires kopen? Ruime keuze
Second Chance Apartments, 2nd Chance Apartments Locators for Bad Credit
13 Fun & Best Things to Do in Hurricane, Utah
Pain Out Maxx Kratom
6576771660
Here's Everything You Need to Know About Baby Ariel
Lady Nagant Funko Pop
Crigslist Tucson
Devotion Showtimes Near Showplace Icon At Valley Fair
552 Bus Schedule To Atlantic City
Diccionario De Los Sueños Misabueso
Sam's Club Fountain Valley Gas Prices
Latest Posts
Article information

Author: Madonna Wisozk

Last Updated:

Views: 6288

Rating: 4.8 / 5 (68 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Madonna Wisozk

Birthday: 2001-02-23

Address: 656 Gerhold Summit, Sidneyberg, FL 78179-2512

Phone: +6742282696652

Job: Customer Banking Liaison

Hobby: Flower arranging, Yo-yoing, Tai chi, Rowing, Macrame, Urban exploration, Knife making

Introduction: My name is Madonna Wisozk, I am a attractive, healthy, thoughtful, faithful, open, vivacious, zany person who loves writing and wants to share my knowledge and understanding with you.