Been trading options for a few months now but still confused about expiration.
What happens when my call options expire in the money? Do I get the profit automatically or do I need to act before expiration?
Had a few expire last week and want to understand the process.
Binary options pay fixed amounts. ITM calls get predetermined payout percentage, not price difference. OTM calls expire worthless. Check contract terms for exact payout rates.
When call options expire in the money, you automatically receive the payout. No need to do anything. The platform determines your profit based on the difference between the strike price and the market price at expiration. For example, if your call has a strike price of $100 and expires at $105, you get a set percentage payout. It’s crucial to understand the payout structure before making trades, as some newer traders mistakenly think they get the actual price difference.
Three years ago I had a Gold call that expired just 2 pips ITM and panicked thinking I’d lose everything.
Turns out the platform credited my account with the full 82% payout within seconds of expiration. No buttons to click or anything.
The hardest part is watching those final minutes tick down when you’re barely ITM.
Automatically getting paid is how it works when calls expire ITM. It’s quick.
Most platforms manage this process without any action needed from your side. The payout appears in your account as soon as expiration time hits.
Based on experience trading on mobile, the results show up quickly after the candle closes. It usually takes a few seconds to see the updated balance.
Just keep in mind that even if you are ITM by one pip, you still receive the full payout percentage shown when opening the trade.