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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Advanced Platform. Free Practice. Try Practice Account. Open account. The strike is the price level you think the market will be above or below at expiration.
When opening a trade an expiration time will be set. The expiration is the moment of truth traders live for. This is when trading is over and the value of your binary option is determined.
Risk-free Sandbox IQ Forex is a sandbox for forex margin trading. About Binary Options Trading. Select Asset The first step is to pick the asset you want to trade.
It also has the enter price brackets choose system in common with Classical variant. In this money instrument the dealer-in-goods usually indicates the exercise price.
This sort of price plays a very important role for making the possible profit. This image tells us that the first type let only current price participate in marketing.
However, the second one let both current and exercise price participate in marketing. Dealers-in-goods are responsible for setting the exercise price.
You can see it at the picture below. At any moment you have access to 22 strikes. Strike is a price level similar to the usual level of option opening.
Our aim is to predict where the price will be at the time of the option closing relating to this cost level — higher or lower. The more distantly the strike is situated from the current price, the more profitable it is.
Put simply, at first we choose strike and then choose the direction. Such a combination gives an opportunity of buying cheaper option. For example, you may choose strike which is situated considerably lower than the price and open a bull transaction.
You may also choose a strike situated higher than the price is and open a bear transaction. It is clear that such a transaction earning power will be considerably lower even if the prediction was right.
If you want to start IQ Option marketing right now but do not know how to do it, the following video is likely for you.
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