At the money describes the situation when the strike price is equal to the current price at the expiration moment. In this case, there is no profit, but the investment amount is credited back to your balance, which means that while you get nothing, you lose nothing as well. Keep in mind that not all digital option brokers return the investment amount when the at-the-money situation occurs. However, when it comes to Binolla, this option is available. 

Examples of At-the-Money Situations

To make it clearer about the money in trading, let’s look at a couple of examples. A trader decides to buy a Higher contract for AUD/USD at 0.6615, expecting the price of the asset to move above the strike price within 1 minute. They invest $50 in the trade. However, after the minute expires, the price is still at 0.6615. While the trader gains nothing, they get back their $50 (if the broker supports the at-the-money feature).

Now let’s see how it works when a trader buys a Lower contract. Let the market participant buy a Lower contract for S&P500 at 6,390, expecting that the asset will move down within the upcoming 30 seconds. They invest $30 in this trade. However, the price is still at 6,390 within 30 seconds, which means that the at-the-money situation occurs. While the trader makes no gains, they have their investment back (if the broker supports the at-the-money feature).