Definition
An option where the strike price equals or is very close to the current market price.
Understanding At The Money (ATM)
At The Money (ATM) is an important concept in stock market trading. Understanding this term will help you make better trading decisions and communicate effectively with other traders and financial professionals.
Key Points
- Basic Definition: An option where the strike price equals or is very close to the current market price.
- Category: This term is commonly used in Derivatives
- Relevance: Essential knowledge for traders operating in Indian stock markets
Practical Example
When trading on NSE or BSE, you'll encounter at the money (atm) regularly. For example, understanding this concept helps you analyze market conditions, make informed decisions, and manage your trading positions effectively.
Related Concepts
To fully understand at the money (atm), you should also be familiar with related trading concepts. Check out the related terms in the sidebar for a comprehensive understanding of this topic.