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If the price is above the strike price (even by one pip the trader wins the bet at the expiry date. The same stands for short positions. The trader buys a PUT option if he/she believes the market is going lower. If the market price.
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iQ Option 2013,there are alternative options contracts though like: One Touch/ No Touch Where you select if the asset price will touch a certain strike binary options financial trading school price by expiry or not. Range Trading.
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