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  • An Option Expiring at the Target Price

    Will I make a profit or lose my money for this? What is the difference between ' In The Money ' and ' Out of The Money ' expiry?

  • #2
    If an option you invested in is closing at its exact target price, it is considered to be a “in the money” expiry. Moreover, in this case you will gain 100% of the initial investment you made.

    Comment


    • #3


      When expiring “in the money” your option has acted as you predicted and has gained the return on your initial investment. An option expiring “out of the money” is an option that hasn’t reached its target price and as a result you lose your investment. For example, an option expiring “in the money” would be a high option expiring above the target price, or a low option closing below its target price.


      An option closing “out of the money” is an option that hasn’t fulfilled your expectations of the market.


      Comment


      • KittyHawk
        KittyHawk commented
        Editing a comment
        Wolfpack it is somehow similar to what you are thinking, though we basically know that binary options trading have a fixed ROI it applies to the "in the money" and "out of the money" I'm not just pretty sure how this goes but it is highly similar on how you close your trade on a regular binary options.

      • Vespasian Thropy
        Vespasian Thropy commented
        Editing a comment
        So you are saying that out of the money and in the money is another term for digital option? Just asking? bit confuse right here!

      • TradingGlory99
        TradingGlory99 commented
        Editing a comment
        Binary options does have a fixed ROI, is that what you are talking about guys?

    • #4
      swanson So you are telling me that using both this option is not as profitable as the regular trade for binary options?

      Comment


      • BlazingPuffy
        BlazingPuffy commented
        Editing a comment
        Not exactly highly profitable but I guess because of the high percentage you will be able to get a high return with a small investment.

      • DiBond007
        DiBond007 commented
        Editing a comment
        What this mean is that you trade it higher you will get a high profit, but if you trade it lower then the profit will be low as well, so basically your ROI depends on how much you are willing to invest.

    • #5
      Can you profit from an Option Expiring at the Target Price? Can this kind of option be highly profitable or just make your investment stagnant?

      Comment


      • Winchesters Charm
        Winchesters Charm commented
        Editing a comment
        somehow you can manage to have a profit from an Option expiring at the Target Price, but I will have to say it is not highly profitable as you think.

      • KittyHawk
        KittyHawk commented
        Editing a comment
        It might not be very profitable but it is worth taking the risk of trying to trade an expiring option at a target price, you need a little more of accuracy and planning with regards to it.

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