The asset will rise, this type of investment is named “Call” option. The other possibility is presented when you predict that the price of the asset will fall, this type of investment is named “Put” option. If a trader believes the market is rising, she/he would purchase a "call." If the trader believes the market is falling, she/he would buy a "put." For a call to make money, the price must be above the strike price at the expiry time. For a put to make money, the price must be below the strike price at the expiry time. The strike price, expiry, payout and risk are all disclosed at the trade's outset. For most high-low binary options outside the U.S., the strike price is the current price or rate of the underlying financial product, such as the S&P 500 index, EUR/USD currency pair or a particular stock. Therefore, the trader is wagering whether the future price at expiry will be higher or lower than the current price. Choosing an asset is the first step of your investment. For instance, if you have an interest in gold prices, you may choose to place a binary investment in gold. Obviously, the more familiar you're with the gold market the better your chances are of successfully predicting the fluctuations of gold prices.Learn about binary options. Also called fixed-return options, these have an expiration date and also a "strike price." A strike price is the price at which a stock can be bought or sold by the option holder by a specific date. It will be stated in the binary option contract. If you bet correctly on the market's direction and the price at the expiration date is higher than the strike price, you would be paid a fixed return no matter how much the stock went up.
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