Terminology. Expiration Rate in Binary Options. Asset – this is the underlying stock, commodity, currency pair or index, on which the binary option is based. Binary option –this term contains excessive information that cant be explained in just a few words Binary (Digital) Options – A binary option, sometimes referred to as a digital option, is an exotic option that offers a fixed return. In mathematics jargon, a binary number is one which is given a value of either 0 or 1 from which the name is derived With the glossary term index binary we describe the binary option which has underlying an asset that is measured to an index. Such binaries can be understood by these examples: Dow Jones, FTSE and etc. Investment amount. When you purchase binary option to trade it, you pay a particular value and this is the investment amount/5(8)
Binary Options Glossary
In this article you will find some of the most frequently used terms and we will provide you with their explanation. Understanding them is necessary because you will be using them on a daily basis during your trading career.
Naturally, if you start trading without having the necessary core knowledge, you are very likely to fail and wipe your initial capital. The main terms that we are about to mention below are: asset, binary option, broker, current rate, expiration rate, range option, in the money, high or call option, low or put option, subjacent asset, out of the money, rate of profit.
Asset — this is the underlying stock, commodity, currency pair or index, on which the binary option is based. Binary option —this term contains excessive information that cant be explained in just a few words. Basically, the binary option can be explained as way of online investment for a fixed return with an expiration period, binary option terminology, which is also fixed. It has gained huge popularity in the last couple of years mainly because its simplicity and appeal toward the general public.
Broker — brokerage companies allow users to trade binary options on the markets. It would be impossible to make a deal, if there werent any brokers. High or Call Option — this is the most used type of binary binary option terminology. It speculates that the assets price will rise.
Low or Put Option — the opposite of a High of Call option. It is purchased when the trader thinks that the assets price will decrease.
In-the-money — this term is used in order to describe the situation when you have predicted the movement of the asset price correctly and the binary option is binary option terminology. Out-of-the-money — this term describes the situation when you have wrongfully predicted the assets price movement, binary option terminology the binary option a loser.
Rate of profit — this term represents the percentage of money that the trader gets as return after a trade expires in the money.
Fundamental analysis — this is one of the topics that will be extensively covered in the next parts of the tutorial, binary option terminology, but for now all you need to know is that the fundamental analysis represents a way to evaluate a stock, currency or commoditys fluctuations based on such political, binary option terminology, geopolitical, demographic, macroeconomic factors and others.
Technical analysis — another topic that will be thoroughly covered later. It is an analysis methodology that uses primarily chart patterns to help you predict the direction an asset might move. Generally it binary option terminology fundamental factors and is based mainly on historical price data and volume. Skip to content. Expiration Rate in Binary Options ».
You will learn about the following concepts Basic binary options terms What is asset and current rate Call and put options In and out of the money. Fusion Markets Binary option terminology Accepted.
Lot Size. Ava Trade. XM Group. Simplified Way of Trading Turn Your Knowledge Into Profit Binary Options Platforms. Getting Started with Binary Trading Terminology Expiration Rate in Binary Options.
key terminology of Binary trading
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With the glossary term index binary we describe the binary option which has underlying an asset that is measured to an index. Such binaries can be understood by these examples: Dow Jones, FTSE and etc. Investment amount. When you purchase binary option to trade it, you pay a particular value and this is the investment amount/5(8) Binary (Digital) Options – A binary option, sometimes referred to as a digital option, is an exotic option that offers a fixed return. In mathematics jargon, a binary number is one which is given a value of either 0 or 1 from which the name is derived Binary option - Wikipedia
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