What is a Put


If on the previous sub chapter we were looking at what a call is, it is time to look at what to expect from a put.

In simple words, whenever you are buying put option you are expecting the price of the underlying security to go down, and by the time the option expires to be lower than the options strike price.

The same is very much true when dealing with binary options: when you are trading a put binary option you are looking for market price to go down, in order for that option to be a winner.

For example:
when a trader thinks the eur/usd price will close at or below the 1.3100 level at 15:00 GMT, for example, he/she can buy a put option on that outcome;

let’s assume he/she buys at 14:00 GMT one put option with the price of 100 USD;

if price at 15:00 GMT is at or below the 1.3100 level, the call option’s profit = 75%*100 usd = 75 usd

The recordings that go with this chapter will show you live examples about what to expect from a put option.

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