Binary option and auto trading is becoming popular today, as many people are looking for ways to invest their money in the market. In this kind of trading, the ownership of the asset does not transfer to the trader, which is different from the traditional investments that involve the transfer of ownership to the buyer. Click on the link http://cybermentors.org.uk to read more about the possible outcomes in the binary options and auto trading.
This kind of trading is also referred to as mysterious options with very simple functions and application. Binary options and auto trading involve prediction and speculation of the prices of the financial instruments using market conditions such as economic changes, financial indicators, and market volatility. Upon making a decision to invest, the return comes at the expiry of a specific date in which the following three possible outcomes may occur:
In The Money (ITM)
Every investor intends to get positive returns at the end of the trading day. One possible result that may take place at the end of the auto-trading period is the ITM. It means that your prediction of the assets’ prices rising at the expiration of the trading period was correct, and thus you make a profit.
In the money refers to the situation of profitability and it occurs when the price of the asset is higher at the expiry date than at the start of the period.It is important to note that this profit is usually a fixed return provided in advance by your broker at the beginning of the investment period. It is the most preferred result in the market, as every trader seeks to make a profit out of his investment.
At The Money (ATM)
At The Money is a situation where the prices of asset trades through binary options do not increase or fall but remain unchanged during the trading period. Sometimes the market dynamics may remain the same during the fixed period for trading. When this phenomenon occurs, the price of the assets may remain the same all through the trading period. Consequently, you as an investor end up getting nothing in return of your auto-trading. Even though this situation rarely occurs, you should expect it as a possible outcome in the binary option and auto-trading.
Out of The Money (OTM)
Another very possible outcome in business is making losses. Out of The Money occurs when the price of asset you were trading in falls at the expiry period.
It means that your prediction of the price rising higher than at the beginning of the period was incorrect. When the price of the asset drops at the end of the fixed duration, you face a loss.