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GlossaryPricing & settlement

In-the-money (ITM)

A contract state in which the stated settlement condition has been met.

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Direct answer

Where this term appears

Look for this term around the chart, strike or barrier controls, payout display, order confirmation, result history, or contract specification. The recorded value should be understandable before an order is confirmed.

Use the definition above together with the exact value, condition, timestamp, account, product, or payment context shown by the broker.

Do not confuse

How In-the-money (ITM) differs from related terms

In-the-money (ITM) is often researched beside Out-of-the-money (OTM) and Settlement price and Contract multiplier. The labels can appear in the same workflow, but they do not describe the same field or condition.

01
Out-of-the-money (OTM)

A contract state in which the stated settlement condition has not been met.

02
Settlement price

The final quote used to determine whether the contract condition was met.

03
Contract multiplier

A number applied to a stated settlement value to calculate the total amount paid per contract.

Practical use

Tie the state to one written settlement rule

In-the-money (ITM) means a contract state in which the stated settlement condition has been met. A contract state describes the relationship between the observed settlement value and the contract condition. It is not a forecast and may change when equality, rounding, quote side, or path observation is defined differently.

A neutral example

Save the exact condition, strike or barriers, final stored value, displayed precision, and whether equality is strict, inclusive, refunded, or void. Reconstruct the label from those fields.

01
Condition

The governing above, below, equal, touch, range, or void rule.

02
Final value

The unrounded settlement record and the quote source or calculation used.

03
Result

The history entry showing cash outcome, refund, correction, and status.

In a broker review

How to use In-the-money (ITM) in a comparison

In a broker review, do not read In-the-money (ITM) in isolation. Match the broker's own definition to the relevant contract, account, pricing, payment, or platform screen and record the condition that changes its meaning.

Comparison context

Why it matters when comparing brokers

How to use this term

Pricing and settlement terms determine what the platform records, when the result is evaluated, and how the return is calculated. Small differences can change whether two displayed offers are genuinely comparable.

What it does not prove

A high displayed percentage or precise chart does not by itself establish a fair settlement process. The source, timestamp, quote side, cutoff, and exception rules still matter.

Broker checklist

What to verify

Check these points on the broker's product screen, account flow, terms, or help pages.

01
Displayed basis

Check whether the figure is gross return, net profit, refund, or another calculation.

02
Timestamp

Compare entry, cutoff, observation, and settlement times using the same time basis.

03
Price rule

Confirm whether bid, ask, midpoint, last price, or another quote determines the result.

04
Exceptions

Read tie, void, rejection, requote, outage, and correction rules.

Quick answers

Common questions

Short answers for users comparing binary options brokers and account conditions.

What is In-the-money (ITM) commonly compared with?

In-the-money (ITM) is commonly compared with Out-of-the-money (OTM). Out-of-the-money (OTM) means: A contract state in which the stated settlement condition has not been met.

Why does this term matter when comparing brokers?

Pricing and settlement terms determine what the platform records, when the result is evaluated, and how the return is calculated. Small differences can change whether two displayed offers are genuinely comparable.

What should I check when comparing this feature?

A high displayed percentage or precise chart does not by itself establish a fair settlement process. The source, timestamp, quote side, cutoff, and exception rules still matter. Check the broker's definition, applicable terms, and account or product screen before relying on the label.