Exercise Price

The “Exercise Price”, also known as the “Strike Price”, is the price of the underlying “Asset” or “Instrument” at the time the trade is placed. The exercise price forms the basis of the trade contract. At the trade’s “Expiry Time”, the asset’s “Expiry Price” gets compared to the exercise price to determine whether the trade contract finished either “In-The-Money” so the trader wins and is entitled to the payout for the winning trade, or “Out-Of-The-Money” so the trader loses and is entitled to no payout.