Glossary

What Is a Put Option in Trading? Definition & Examples

A Put option is a prediction that price will be lower at expiry than at entry. Learn how Puts work, when to use them, and what signals suggest a bearish entry in binary options trading.

Maria R.
• 28 июля 2026

A Put option in binary options is a prediction that the price of an asset will be lower at the moment of expiry than it was at the moment you entered. If price is below your entry price (strike price) at expiry — even by a single tick — you win the payout.

How a Put Works

Gold is trading at $2,350. You believe it will fall in the next 30 minutes. You select Put, stake $10, 30-minute expiry.

At expiry:

  • Gold is at $2,344 (lower than $2,350) → Put is correct (In the Money) → You receive $10 + payout
  • Gold is at $2,358 (higher than $2,350) → Put is incorrect (Out of the Money) → You lose $10

When to Use a Put

A Put is placed when your analysis suggests downward price movement:

  • Price is in a downtrend and rallying to resistance
  • RSI is falling from overbought territory
  • A bearish candlestick pattern (bearish pin bar, shooting star, bearish engulfing) at resistance
  • Momentum indicators confirm downward direction

The Exact Price Rule

Identical to Call: only the price at the precise moment of expiry determines the outcome. A Put that appears profitable mid-session but closes above the entry price at expiry is a loss.

Related Terms

→ Call Option | Strike Price | Expiry Time | Out of the Money | Payout Rate

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