Binary options trading glossary

Glossary of Binary Options Terminology - Trading Terms with Explanations

 

binary options trading glossary

What are binary options. A binary option is a type of option with a fixed payout in which you predict the outcome from two possible results. If your prediction is correct, you receive the agreed payout. If not, you lose your initial stake, and nothing more. It's called 'binary' because there can be only two outcomes – . Glossary of Common Terms in Binary Options Trading To make the information easier to be consumed and realized by you, we will begin our education with some common terms and basic words from the binary options trading glossary. Glossary. Glossary. Binary fazybalicudy.ga options are financial instruments in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money or nothing at all if the option expires out of the money, and traders make predictions on the price movements of underlying assets after a predetermined period of time.


Binary Options Brokers for Beginners - Trading Glossary


Glossary Glossary Binary option. Binary options are financial instruments in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money or nothing at all if the option expires out of the money, and traders make predictions on the price movements of underlying assets after a predetermined period of time.

Current market value of the option is 1. The trader is choosing Call option, predicting that the binary options trading glossary of the option will rise above 1. If the price will be below this level, the trader will suffer a loss.

This term is used to describe an option that yields financial profits, binary options trading glossary. When the option expires in the money it means that your prediction was correct, and you will receive predetermined return. This is a term used to describe situation when the option's strike price and its market price at the moment of expiry are identical. If the option expires at-the-money, binary options trading glossary, your initial investment is refunded to your account balance.

Binary trading assets are currency pairs, commodities, binary options trading glossary, indexes or stocks. All binary contracts are based on these four classes of assets. Each one of these four classes includes multiple individual assets.

Call options. A call option is a binary options trading contract that generates profit if the price of the asset increases by the time the contract expires. Put options.

A put option is a binary options trading contract that generates profit if the price of the asset decreases by the time the contract expires. Expiry time. The binary options trading glossary time is the specific date and time the option contract closes. It ranges from 30 seconds to several weeks.

Currency pair. A currency pair is a type of asset that can be traded as a binary option. A commodity is binary options trading glossary type of asset that can be traded as a binary option. Specifically, commodities are raw materials like gold or oil, and agriculture products like wheat and gold. An index is a type of asset that can be traded as a binary option.

Stock is a type of security that that can be traded as a binary option. For example Apple, Microsoft, Sony. Strike price. The strike price is the price of the asset when it is purchased. It determines whether a trade finishes out of the money or in the money at expiry. The return is the amount you will receive when your trade finishes in the money. Investment amount. It is the amount of money invested in one option.

Market price. The market price is the quoted asset price that is used to represent the current value of a particular asset. Technical analysis.

Technical analysis in binary options trading glossary options trading is the study of the charts and historical data to in order to predict future trends and patterns of an asset behavior.

Fundamental analysis. Fundamental analysis in binary trading is the method of study when traders analyze market news and sentiment to predict the future value of an asset.

The more the value changes, the higher is volatility. If an asset has a high volatility, there is more risk associated with trading it, but greater potential for profits. If an asset has a low volatility, binary options trading glossary, there is a lower risk trading it, but less profit potential.

 

Binary Trading Glossary | Binary Trading

 

binary options trading glossary

 

No touch option type. A binary option type that will be in the money if the market price for the underlying asset at any time until the option's expiration time or at the moment of option's expiration time does not reach the target price. A "binary options brokers for beginners" page for traders who are new to trading online. And a trading glossary for when you wonder what a word means. Common Glossary For Binary Options Trading – Basics. Let`s begin with some of the most common terms from the binary options trading glossary. After all, proper and gradual learning is the most optimal course. Besides, by studying the glossary step by step, it will be easier for you remember the most significant words from the binary options glossary!/5(6).