Let’s take the following inquiry as an instance: Will the cost of gold be above $1,250 at 1:30 p.m. today? If you believe it will be, you get the binary option. If you assume gold will be below $1,250 at 1:30 p.m., after that you sell this binary option. The cost of a binary option is constantly in between $0 as well as $100, and also similar to other financial markets, there is a proposal as well as ask cost.
If you get the binary option right after that, you will pay $44.50. If you decide to sell appropriate after that, you’ll cost $42.50. Let’s think you make a decision to buy at $44.50. If at 1:30 p.m. the rate of gold is above $1,250, your option expires and it becomes worth $100.