Fundamental Knowledge (2) How Option Prices are Determined
The option price is the sum of intrinsic value and time value.
Note that IG Securities displays option prices not in yen, but in units called points. Points range from 0.0 to 100.0.
If the option does not meet the judging conditions (out of the money), the intrinsic value is zero.

Also, the time value becomes zero at the judging time.

The figure is quoted from the IG Securities homepage.
Intrinsic value fluctuates with the price movement of the underlying asset (Nikkei 225), sometimes becoming positive, sometimes zero, but
Time value generally decreases as time passes. The word generally is used because volatility changes can cause it to increase at times, but ultimately it becomes zero. The decrease in time value starts slowly at first, but as the judging time approaches, it drops rapidly.
You can use this characteristic of time value to conduct trades with high certainty.
Basic knowledge (1) What is binary options
Basic knowledge (2) How option prices are determined
Basic knowledge (3) Glossary for binary options—terms specific to IG Securities—and how to read trading results
Basic knowledge (4) There are three trading styles
Advantages of Nikkei 225 binary options
How to open a demo account
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