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Glossary

Asset

A stock, commodity, currency, or index.

At The Money

When the option expiry price is the same as the buying price.

Binary Option

Also known as Digital options or FROs, it is a prediction of the direction a stock, commodity, index, or foreign currency will take by a designated expiry time.

Call Option

When the trader has chosen the upward direction for an asset price by expiry.

Expiry Price

The price of the underlying asset at the time of expiry according to the real-time market price. The expiry price determines whether the option has expired in-the-money or out-of-the-money.

Expiry Time

The designated time and date at which an option expires.

In the Money

A trader’s option is in-the-money when his prediction on the direction (regardless if it was above or below) was correct.  Options expires in-the-money, and the trader receives the full payout even if the trader was correct by a single pip.

Investment

The amount invested in a specific option.

At The Money

When the option expiry price is the same as the buying price.

In the Money

A trader’s option is in-the-money when his prediction on the direction (regardless if it was above or below) was correct.  Options expires in-the-money, and the trader receives the full payout even if the trader was correct by a single pip.

Out Of The Money

A binary option is out-of-the-money when the trader’s prediction was incorrect regarding the direction of the price by expiry time.  The trader will then receive 10% of his investment amount.

Binary Option

Also known as Digital options or FROs, it is a prediction of the direction a stock, commodity, index, or foreign currency will take by a designated expiry time.

Call Option

When the trader has chosen the upward direction for an asset price by expiry.

Out Of The Money

A binary option is out-of-the-money when the trader’s prediction was incorrect regarding the direction of the price by expiry time.  The trader will then receive 10% of his investment amount.

Put Option

When the trader has chosen a downward direction for the asset price.

Payout

The percentage amount that the trader will receive at option expiry.

Put Option

When the trader has chosen a downward direction for the asset price.

Expiry Price

The price of the underlying asset at the time of expiry according to the real-time market price. The expiry price determines whether the option has expired in-the-money or out-of-the-money.

ARTICLES

Binary Options How It Works – A Complete Guide

Binary Options How It Works – A Complete Guide

Understanding the basics of binary options trading and how it works will enable you to make more accurate investments when trading online. Binary options are recently introduced investment vehicles that provide an opportunity to the traders to earn huge profits....
[Read More]
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