It becomes a big question for the binary options traders to know whether they are in-the-money or not. It is true that the type of option is selected has the direct impact over the conditions of the contract, where you get the targets to hit. Hence, for finding out the situation of in-the-money, we can take here an example.
An XYZ organization holds shares of $10. As per the above/below option, the share will rise after the day end. If you choose the call option, it means you think that the value of the share will go above the current value at the end of the trading day. So if it reaches $10.01, you will be in-the-money.
On the other hand, the barriers or touch option reflects that the price of the share will touch $12 or higher at least once in the entire trading day. Now, if you buy a call option here and the price of the share reaches $12 or higher at least once in that particular trading day, then you will be in-the-money. Remember, you will significantly lose if the highest value of the share remains till $11.99 before the expiration of the contract.
The boundary or range option denotes a range for the price prediction. As per this fact, the contract stipulates that the value of stock will be between $11.50 and $12.00 by the end of the closing day. If the trading closes at $11.90, you will be in-the-money. Similarly, you will lose your investment, if it closes at $11.54.
This all comes to tell you that how you can check whether you are in-the-money or not. The binary affiliates have to pay lots of stress on this matter to save their investment under the binary option affiliate program.
