How do put options work in the stock market
In fact is one of the most used strategy by novice Traders, because its simple to understand and easy to apply. Its a way to both increase the profits and cutting the losses. If I believe in a raise in prices, I will select the Call Binary Option: of course, I will earn the Payout only and only if my prediction will be right (If the price of the Asset will increase after the Expiry Time).
Otherwise, I will lose the money invested on the Binary Option. Although you cannot select both Put and Call Option in a single trade, you can cover both side of the market using this strategy.