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The trader is purely speculating on whether the price will be higher or lower than the current price, at a specific time in the future. So the price at expiry is the one that will decide whether an option has won or lost (in the money, or out of the money in binary jargon). Differences can be significant so traders looking to use binary options long term, need to shop around to find the best payout for the asset class (or classes) they intend to trade.

As digital options (as they are also known) options stock trade trading strategies pdf a very simple fiscal arrangement.

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