Out of the Money Definition. Out of the Money, or “OTM”, is a term that refers to a call or put option that has no intrinsic value because the exercise price is above or below, respectively, the current market price of the underlying security, commodity or currency. An OTM forex call has a currency price that is lower than the strike price. An OTM forex put has a currency price that is higher than the strike price. When currency options are “out of the money”, the owner hold the option to expiration or sell beforehand for a profit if the option becomes “in the money” or “ITM”. The other two related classifications of options are “In the Money”, or ITM, options and “At The Money”, or “ATM”, options.
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