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Options and Futures

Out-of-the-Money Option

An option that holds no inherent value, meaning its strike price is higher than the current price of the futures contract or its strike price is lower than the current futures price. This type of option is known as "out of the money" and does not hold any profit potential at the current market conditions. It is important to understand the concept of intrinsic value when trading options, as it can greatly impact your investment decisions.

Related terms

Nearby (Delivery) Month

Understand the meaning and definition of Nearby (Delivery) Month in the context of stock market, trading, and investments.

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Negative Yield Curve

Understand the meaning and definition of Negative Yield Curve in the context of stock market, trading, and investments.

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Underlying Futures Contract

Understand the meaning and definition of Underlying Futures Contract in the context of stock market, trading, and investments.

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Book Entry Securities

Understand the meaning and definition of Book Entry Securities in the context of stock market, trading, and investments.

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Suspension

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

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Offer

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

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