ATM Full Form in Share Market

What is the Full Form of ATM in the Share Market?

The ATM’s full form in the share market is At the Money. This is the term referring to the options contract that has the same strike price, as that of the underlying market price. At the Money, options incur tremendous trading activities and have all possibilities of becoming profitable.

At the Money – How does it work?

ATM is an instruction that is given to a broker to place a market order to buy or sell the securities at the existing market bid. These market orders are generally sued by investors who demand the immediate execution of the underlying transaction. The ATM options are highly beneficial for investors who do not have the time to watch the market and trade accordingly. But they also run the risk of paying higher prices than what is required.

Advantages of the Market Options trading:

Most investors perform At the Market trading and ensure that the order gets filled fast and promptly. They are ideal trading tools for investors who always make investment decisions after investing and for those who wish to complete a large trade within a specific date. They are also extremely beneficial for traders who invest in high-volume stocks and have no time to watch the market.