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Out-of-the-money

When trading in binary options an out-of-the-money result is when the price of the chosen asset will not earn the investor anything at the expiration time.

For Call options an out-of-the-money result would occur when the expiry price in lower than the price was at purchase and at the opposite end, an out-of-the-money result for a Put option would occur when the expiry price is higher than the price of the chosen asset at the time of purchase.