After the expiration time, if the price is above the strike, the person with the correct prediction will get the profit payout. In fact, the buyer gets the profit here, and the seller incorporates loss. After the expiration time, if the price is below the strike, then the seller will get the profit payout. Different platforms have different indications for making predictions. It varies from platform to platform, but the algorithm is universal for binary options trading.

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Strike Prices in action For general binary options trading, you should buy a contract or asset if you can predict that the market will be at a higher level than that of the strike price.

In such scenarios, the potential outcomes are as follows: After the expiration time, if the price is above the strike, the person with the correct prediction will get the profit payout. Whereas, put options in strike price means the value at which you can sell the stocks. The strike price of a commodity that is below than stock price is safer for the call option as compared to the strike price that is above the stock price. Similarly, a better put option is the one where the strike price is at or above the stock price.

For selecting the right strike price, you need to understand whether the asset value will be more or less than this price at the expiry time. Along with accurate strike price, you also need to predict the right expiry time to reap maximum profit from your investment.

Read other important articles in the binary glossary. Show all posts. What is an exotic option? Definition and example. Binary Options refund definition. What is a day trader?

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In the field of binary options trading , the strike price is a level that a trader predicts for the market to rise or fall. It is a theoretical market price that is quite popularly being used in binary options trading journeys. Each asset or contract has its own binary options strike price. It depends on you to decide the selected contracts that you wish to trade with. You can then check the strike prices of those assets.

And then decide whether you want to buy or sell those contracts. For general binary options trading, you should buy a contract or asset if you can predict that the market will be at a higher level than that of the strike price.

And you need to sell the contract or asset if you predict that the market will go downwards, below the strike price. After the expiration time, if the price is above the strike, the person with the correct prediction will get the profit payout.

In fact, the buyer gets the profit here, and the seller incorporates loss. After the expiration time, if the price is below the strike, then the seller will get the profit payout. Different platforms have different indications for making predictions. It varies from platform to platform, but the algorithm is universal for binary options trading. Menu Learn trading Binary Options CFD Day trading ETFs Futures Trading Books Calculators Commodity Trading Copy Trading Order Types Portfolio Price Action Swing Trading Trade Trader Trading Indicators Trading Strategies Options Charts Candlesticks Chart Pattern Technical Analysis Forex Crypto Crypto Exchanges Stocks Broker Platforms Software cTrader MetaTrader 4 MetaTrader 5 Trading Apps TradingView CFD Broker Crypto Broker Forex Broker Trading Accounts Glossary.

Strike Prices in action For general binary options trading, you should buy a contract or asset if you can predict that the market will be at a higher level than that of the strike price. In such scenarios, the potential outcomes are as follows: After the expiration time, if the price is above the strike, the person with the correct prediction will get the profit payout.

Different platforms have different indications for making predictions. com Cookie Name vuid Cookie Expiry 2 Years Accept YouTube Name YouTube Provider Google Ireland Limited, Gordon House, Barrow Street, Dublin 4, Ireland Purpose Used to unblock YouTube content. Similarly, a better put option is the one where the strike price is at or above the stock price. After the expiration time, if the price is above the strike, the person with the correct prediction will get the profit payout. Privacy Preference Essential 1. As a trader, you have to predict whether the value of a commodity will exceed or recede the strike price after the expiration time. For more information read our entire risk warning.

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