Jargons used in Binary Options

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I’ve complied list of jargons to help refresh the memory or if you don’t know what a term means. There so many short acronyms I sometimes forget so this list helps me keep it all in one place.

ReferenceDescription
ATM - at the moneyShare price and strike price are the same
ITM - in the moneyA call option is in the money when the strike price is below the spot price.
OTM - out the money A call option is out of the money when the strike price is above the spot price of the underlying security.
ROI - Return on investmentThe percentage of profits on your invested amount. Formula: Profits / Investment = ROI

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