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What is the meaning of itm trading in the context of cryptocurrencies?

avatarNganji PacifiqueNov 25, 2021 · 3 years ago3 answers

Can you explain the meaning of itm trading in the context of cryptocurrencies? What does itm stand for and how does it relate to cryptocurrency trading?

What is the meaning of itm trading in the context of cryptocurrencies?

3 answers

  • avatarNov 25, 2021 · 3 years ago
    ITM trading in the context of cryptocurrencies refers to In-The-Money trading. It is a term used to describe options contracts that have intrinsic value. In the case of cryptocurrency options, an ITM trade means that the strike price of the option is favorable compared to the current market price of the underlying cryptocurrency. This means that if the option were to be exercised immediately, the trader would make a profit. ITM trading is often seen as a bullish signal, indicating that the market is expecting the price of the underlying cryptocurrency to increase.
  • avatarNov 25, 2021 · 3 years ago
    ITM trading stands for In-The-Money trading in the context of cryptocurrencies. It refers to options contracts that have intrinsic value, meaning that the strike price of the option is favorable compared to the current market price of the underlying cryptocurrency. This can be a profitable trading strategy for traders who believe that the price of the cryptocurrency will continue to rise. By purchasing ITM options, traders can potentially profit from the price movement of the underlying cryptocurrency without having to buy or sell the actual cryptocurrency itself.
  • avatarNov 25, 2021 · 3 years ago
    In the context of cryptocurrencies, ITM trading refers to In-The-Money trading. It is a term used in options trading to describe contracts that have intrinsic value. When an options contract is ITM, it means that the strike price of the option is favorable compared to the current market price of the underlying cryptocurrency. This means that if the option were to be exercised immediately, the trader would make a profit. ITM trading can be a profitable strategy for traders who have a bullish outlook on the price of the underlying cryptocurrency.