Common comparison error
Automatic exercise is a product label, not a complete condition, observation, equality, payout, settlement, or Maximum payout specification.
GlossaryPricing & settlement
Automatic exercise
Settlement occurs automatically under the contract terms; the holder does not submit a separate exercise instruction.
Practical use
How to verify Automatic exercise
Read Automatic exercise together with Barrier breach, Maximum payout, Out-of-the-money (OTM). The comparison must preserve the exact rule, value, state, and evidence described below.
A neutral example
A 100-unit Automatic exercise references EUR/USD, pays 80 net above 1.0850 at 14:05 UTC, loses 100 below, and refunds equality; Barrier breach is specified separately. Automatic exercise is distinguished here by one decisive fact: the system settles under contract terms without a separate exercise instruction from the holder.
Evidence path
Where to verify Automatic exercise
Use the source that governs the exact contract, account, entity, or platform state. A general definition cannot replace current broker terms.