Strike Price

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The strike price is the price level you think the market will be above or below at expiration. If you think the market price (expiration value) will be above the strike, you buy the option. If you think the market will be at or below the strike price, you sell the option.

The market’s price at expiration is compared to the strike price to determine whether your binary option has settled in, at, or out of the money.

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