Options and Futures

At-the-Money Option

A strike price for an option that is either equal or close to the current market price of the underlying futures contract. This type of option is known as an "at-the-money" option. It allows the holder to purchase or sell the underlying asset at a price that is already reflective of the current market value. In finance, this concept is important to understand as it can impact the potential profitability of an option contract.

Related terms

Price Limit

Understand the meaning and definition of Price Limit in the context of stock market, trading, and investments.

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Primary Dealer

Understand the meaning and definition of Primary Dealer in the context of stock market, trading, and investments.

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U.S. Treasury Bond

Understand the meaning and definition of U.S. Treasury Bond in the context of stock market, trading, and investments.

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Performance Bond Margin

Understand the meaning and definition of Performance Bond Margin in the context of stock market, trading, and investments.

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Out-Trades

Understand the meaning and definition of Out-Trades in the context of stock market, trading, and investments.

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