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The individual who sold to you has an optimal danger of $55.50 if the option resolves at $100–$100 – $44.50 = $55.50. An investor may acquire several agreements if desired. Here’s another example: NASDAQ United States Tech 100 index > > $3,784 (11 a.m.). The existing proposal and offer are $74.00 as well as $80.00, respectively.
If you assume the index will certainly be below $3,784 at that time, you sell at $74.00, or position a deal above that rate and hope a person buys it from you. Top-Binary-Options-The Best Strategies-Book-and-Top-Binary-Option-Brokers-2020-in-Canada. You decide to sell at $74.00, thinking the index is going to fall listed below $3,784 (called the strike price) by 11 a.m.
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Allow’s take the following concern as an example: Will the cost of gold be above $1,250 at 1:30 p.m. today? If you think it will certainly be, you acquire the binary option. If you believe gold will be listed below $1,250 at 1:30 p.m., then you offer this binary option. The cost of a binary option is constantly in between $0 and $100, and just like various other economic markets, there is a bid and ask cost.
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