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Binary options trading glossary


binary options trading glossary

Inflation The rate at which the price of goods and services rises within an economy. It gives you the ability to trade: All markets. Stake The stake is the amount that a trader must pay to enter into a trade. Credit Money received in an account either from a deposit or a transaction which increases the accounts cash balance Crude Oil WTI The unrefined state of petroleum, Crude Oil is one of the worlds most important and well-traded commodities. Digits Predict the last decimal digit of the spot price with Digits. Contract Size, the amount of underlying asset covered by the option contract. Advantages of binary options trading, aside from the simplicity of its 'yes or no' proposition, binary options trading is also very flexible. The SEC is an agency of the federal government which is in charge of monitoring and regulating the securities industry. Expiry Price The price of the asset when the contract expires. In/Out There are two forex cebu types of In/Out trades: Ends Between/Ends Outside Predict that the market stops inside or outside two price targets at the end of the time period Stays Between/Goes Outside Predict that the market stays inside. Margin The deposit or available credit needed on your trading account in order to keep your positions open.

Binary, options, glossary, trading, Financiel and Fundamental Terms

Ask Price, this is the price at which a binary options trading glossary potential seller is willing to sell. It is also called Expiration. All payouts, earn payouts up to USD 50,000. Volatility Indices Synthetic indices that mimic market volatility. Typically, this term is used to describe large money managers such as banks, pension funds, mutual funds, and insurance companies. Pip Pip stands for 'percentage in point' which is generally the fourth decimal place (i.e. Index, an index comprises different stocks. Stop Order An opening or closing order to buy or sell at a worse price to where the market is currently trading. Gilts UK Government Bonds. Break Even Point, the stock price at which an option strategy results in neither a profit nor a loss at expiry. Trade based on "gut feel" or rely on technical and fundamental analysis.


Binary, options, glossary, day

Spot price This is the current price at which an underlying can be bought or sold at a particular time. SEC The Securities and Exchange Commission. All conditions and durations, all markets and conditions, trade currencies, indices, commodities and more in rising, falling, sideways, quiet, and volatile markets. No Touch trades These are trades where the trader selects a price target, and predicts that the market will never touch the target before the expiry of the trade. Economic Indicator A statistic that indicates current economic growth and stability, or the lack. Delta A measure of the rate of change in an options theoretical value for a one-unit change in the price of the underlying stock. Black-Scholes Formula, the first widely-used model for option pricing. Long A buy position opened in the expectation that the market price will rise. Closing a trade results in a profit or loss being realised. Its average turnover is more than 4 trillion dollars daily. Volatility Indices m's Volatility Indices are synthetic indices that mimic real-world market volatility and are available for trading 24/7. The ftse or the Dow Jones.


Binary, options, binary.com Make your trade

Trade according binary options trading glossary to your preferred strategy. Ftse The ftse 100, 250 and 350 are the best-known stock indices in the UK and are used primarily to bench mark the performance of UK companies by market capitalisation. Although some options have contracts in every month, most equity options are traded with expiration months in every quarter. A call option will be called out of the money when its underlying assets price at expiry time is lesser than the strike price of it. Indicators Data such as interest rates, inflation and employment figures, which indicate the strength and significant trends in a nations economy. Risk Free Trades This is a kind of trading in which investors have a chance to invest in binary options without any risk.


binary options trading glossary

Glossary of, binary, options, terminology, trading

It tends to concentrate on profitability, and may be used to justify an interim dividend. Please note that due to their OTC nature, the prices of our indices may differ from their counterparts on centralised exchanges. Bid Price, the price at binary options trading glossary which a buyer is willing to buy an option or other asset. Exercise Price The price at which the owner of an option can purchase (Call) or sell (Put) the underlying stock. Exercise Price, the price at which the option holder may buy or sell the underlying security, as defined in the terms of his option contract. Call options have positive deltas, while put options have negative deltas. Neutral An adjective describing the belief that a stock or the market in general will neither rise nor decline significantly. Resale prices are on a best-efforts basis and may not be available at all times after purchase. Forex-based instruments in binary trading are currency pairs. CME, chicago Mercantile Exchange, comex, commodity Exchange Inc, New York, commodity. High, an option about which a traders assumes that an underlying asset would expire at a price which is higher than target price. Generally, option contracts that are more liquid tend to have a tighter Bid/Ask Spread while option contracts that are less liquid tend to have a wider Bid/Ask Spread. It often serves as a barometer for a given market or industry and acts as a benchmark from which financial or economic performance is measured.


Arbitrage, the simultaneous purchase and sale of financial instruments in order to benefit from price discrepancies. Intrinsic Value The value of an option if it were to expire immediately with the underlying stock at its current price. A key measure of national income and output for a countrys economy. They are generally categorised as commodities, stocks, currency pairs or indices. Trade on underlying markets that include Forex, indices, commodities, and more. Leading Indicators Economic indicators that change before the economy changes. Our Volatility Indices are available even on weekends. A basic good used in commerce which is usually uniform across producers and can be traded on an exchange. Market Price, the current"d price of a binary options underlying asset is called Market Price.


Financial factors are characteristics of banking sector. It is the difference between an options price and the intrinsic value. FSA Financial Services Authority. So called because the rate was originally transmitted between the London and New York exchanges via the transatlantic telegraph cable in the mid-1800s. In this method signals such as trading volume and price are charted to check the future probabilities. Demo Trading, in demo trading, a demo account is funded with simulated money that allows a trader to do trades. Refund It is the amount of money that is refunded to an investor when an option is expired at the money. A Goes Outside trade pays out if the market touches either the high barrier or the low barrier at any time during the period chosen by a trader. Close, period at the end of a trading day where final prices for the day are calculated. Spread The difference between the buy and sell price of an asset. Expiration Date The calendar cycle of expiration months that is assigned to basic exchange-traded stock options.



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