binary options types: early close, ladders, and pairs can perfectly use call option or put option. Since options trading simply involves a trader analysing the future movements of the price of a given asset, put or call options are the general and basic bets on such movements in prices. The price of the asset in question can either go down or up, depending on the market dynamics. It is, therefore, important for all traders in South Africa to be wary of when to trigger the put or call option since these are the main determinants of profit or loss making.
The put option simply refers to the expectation of a future reduction in the price of the underlying asset. On the other hand, traders in South Africa anticipate an increase in the price of the asset in question. Each option has a strike price. When a trader exercises a put option, the price of the underlying asset has to be below the strike price for the trader to benefit from the trade. When a trader exercises a call option, the price of the underlying asset should be above the strike price for the trader to benefit.
There should be an expiration period, which is used to determine the remaining period, before which the option can be exercised at its strike price. If an option is able to be exercised ?profitably, such an option is termed to be in money while if the option can’t be exercised profitably, it is termed to be out of money. Traders in South Africa, whether newbies or experienced traders are exempted from a lot of worry since IQ Option makes it simple for them to benefit from the trade.