Out of the Money Definition. What is Out of the Money or “OTM”? This is a term that refers to a call or put option that has no intrinsic value because the exercise price is above or below, respectively, the current market price of the underlying security, commodity or currency. An OTM forex call has a currency price that is lower than the strike price. An OTM forex put has a currency price that is higher than the strike price. When currency options are “out of the money”, the owner hold the option to expiration or sell beforehand for a profit if the option becomes “in the money” or “ITM”. The other two related classifications of options are “In the Money”, or ITM, options and “At The Money”, or “ATM”, options.
Forextraders' Broker of the Month
BlackBull Markets is a reliable and well-respected trading platform that provides its customers with high-quality access to a wide range of asset groups. The broker is headquartered in New Zealand which explains why it has flown under the radar for a few years but it is a great broker that is now building a global following. The BlackBull Markets site is intuitive and easy to use, making it an ideal choice for beginners.