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Trading Terms

Near-the-Money

A "near-the-money" option is one with a strike price that is very close to the current price of the underlying asset. This type of option is often considered to have a higher potential for profit, as the underlying asset only needs to make a small move in order for the option to be profitable. However, it also carries a higher risk, as the underlying asset may not move enough to make the option profitable. Understanding the concept of near-the-money options is crucial for those interested in the world of finance.

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