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If you choose Call option: you get profit if the closing price is higher than opening price. If you choose Put option: you get profit if the closing price is lower than the opening price.
Digital Options trading is similar to Binary Options trading. The main distinctive feature is the profitability and the risks of each deal that depend on a manually chosen 'strike price' the extent of the price change.
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Financial products such as Options and CFDs are complex instruments that carry a high level of risk. Such products can lead to investors potentially losing the entirety of their invested capital.
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And start trading in your browser. 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.
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