The binary options target price is the amount that the traders expect the market to reach by the expiry time. If the market price touches the target price that you have set before placing the trade, then you will eventually win the trade.
But if the market price of your asset doesn’t reach the optimal target price, you will lose all of the investment amounts. In fact, the target prices are the key levels or the benchmarks. And the trader determines them in order to predict the outcomes.
The application of target price determination is ideal for high/low, touch/no-touch, and in/out trades. You need to set the target price for each of these trading types for earning profits. The selected target price is often considered as the strike price for a particular trade.
The trading approach with target prices
Most of the broker platforms set the strike prices on their own to help beginners with trading aspects. But some options allow you to set the target price as per your predictions derived from the indicator tools. In fact, that target price will become your new strike price for the particular trade.
If the market price surpasses the target price set by you, then you will be earning the profit. Else, you will have to incur a loss.
Hence, this is what you must know about the target price in order to set it optimally for your trades to turn out to be profitable.