Out-Of-The-Money (OTM)

Being “Out-Of-The-Money” simply means that your trade has lost. A trade will lose where you incorrectly predict an asset’s price will be higher than the strike price at the expiry time, or where you incorrectly predict the asset’s price will be lower than the strike price at the expiry time, you will be “Out-Of-The-Money” meaning that your trade will have lost and your loss is limited to the trade stakes only.