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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

Option A financial contract that gives the holder the right (but not the obligation) to buy… Hedge A strategy to offset potential losses by taking an opposite position in a related asset. Exposure The total amount of capital at risk across all open positions. Zentrader sets maximum exposure… Fixed Risk A feature of binary options where the maximum potential loss is known before entering the… Confirmation (Trade) A screen displayed before a trade is executed, showing the trade parameters. Can be bypassed… Underlying Asset The financial instrument (e.g. currency pair, commodity, stock) on which a binary option is based.

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