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Strike Price

The price at which a trade is entered. At expiry, the closing price is compared to the strike price to determine whether the trade is in-the-money or out-of-the-money.

Related Terms

Derivatives Financial instruments whose value is derived from an underlying asset. Binary options are a type… Out-of-the-Money (OTM) When a trade closes against the trader's prediction, resulting in a loss of the invested… Profit The money earned on a winning trade. In binary options, profit = payout amount minus… Payout The return received on a winning trade, expressed as a percentage of the invested amount.… Spot Rate The current market price of an asset for immediate delivery. Tie When a trade closes at exactly the same price as the entry strike price. On…

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