Make money from scratch on binary options
I am going to break it into the practical way. Note: There is no relationship between Derivative option and Binary option.
It means in the Binary option you can enter in options trade with a price lower than strike price or price higher than the strike price. How the Binary Option works:- It works in the time frame or period.
As you can see from the calculations above, the risk you take is limited to the premium paid on the option.
It has a particular expiry. For example, if you are trading 15 mins expiry time frame or period means your option will expire in 15 mins after it is successfully executed.
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There are so many Brokers available for Binary option. Many brokers provide you with exact time frame expiry for example if we take in terms of 15 mins it will be like In these time options, you can take long or short direction any time before expiry.
For example, if you want to have your expiry Very same applies with 30 mins time frame expiry as well as 5 mins expiry,1-hour expiry….
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You can enter any time before If you choose 15 mins expiry means you can enter at any time and your option will expire exactly after 15 mins when your option executed. For example you took 15 mins expiry entered at You can also choose your country time frame by filtering the time zone in Brokers website.
Above picture shows the screen short of Binary options broker platform which looks like this. Between red and green you can see some numbers keep on changing, that is the market price. Here the exact time 60 seconds is taken Most of the brokers give you expiry time as minimum as 60 seconds and as maximum as daily and weekly and sometimes monthly.
For the above call option example if the spot price at strike price remains 1. For the above example if the spot price at expiry is 1. Recall that call option ATM has also the make money from scratch on binary options scenario.
Time frame 15 mins at What will happen in this example if the option expires at the spot price of a 1. For b which is greater than strike price so, the option expires OTM for the put.
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