Strike Price

The “Strike Price”, also known as the “Exercise Price”, is the price of the underlying “Asset” or “Instrument” at the time the trade is placed. The strike price forms the basis of the trade contract. At the trade’s “Expiry Time”, the asset’s “Expiry Price” gets compared to the strike 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.