Binary Options Glossary


Asset is the underlying instrument which is used to determine a contract. Assets are typically based on currency pairs, commodities, stocks or indices.

 

At the Money means the case wherein the target price of an option is identical to the price of the underlying asset.

 

Binary Options are the assets which are traded on a yes (call) or no (put) forecast basis under a fixed pay-out offering for accurate market directional movements within a specified time frame.

 

Call Option is one of two available option choices; in this case it indicates that the market will move in a direction causing the underlying asset to increase in value within a specified time frame.

 

Current Price is the price which is reported in near real-time as opposed to most price information which is often delayed by fifteen minutes or more.

 

Digital Option is another name popularly used to describe Binary Options.

 

Exotic Options are a type of option which were reserved exclusively for selected traders before being simplified and made openly available to the public in the form of Binary Options.

 

Expiry Level/Price is the worth of the underlying asset when the option expires.

 

Expiry Time is the predetermined time and date when the option expires and can not be traded further.

 

Fundamental Analysis is a major type of analysis which is used to predict market movements and prices when trading by examining economic factors including geopolitical events.

 

In the Money means the case wherein the price of the underlying asset reaches a level that becomes profitable.

 

Investment Amount is the amount of capital which is used to purchase a binary options contract also known as The Stake.

 

Market Price is the quoted current worth of the underlying asset.

 

No Touch is a trade which does not achieve the target value specified in the respective Binary Options contract.

 

Out of the Money means the case wherein the price of the underlying asset reaches a level that becomes loss-making.

 

Payout is the level of profit which is earned when a Binary Options contract expires In the Money. This is typically represented in percentage form.

 

Put Option is essentially the opposite of a Call Option. The second of two available options that indicates the underlying asset will decrease in worth before the specified expiry time.

 

Refund is the amount which is refunded to a client following the expiry of a Binary Options contract At the Money.

 

Return is the specific amount which returned to a client following the expiry of a Binary Options contract In the Money.

 

Strike Price is the worth at which the Binary Options contract for the underlying asset is sold also specifying if the trade has been profitable (In the Money).

 

Target Price is the worth which the underlying asset must reach for the trade to become profitable (In the Money).

 

Technical Analysis is the use of technical research on historical trading data to predict future market movements and prices.

 

Time of Expiration is another name popularly used to describe the Expiry Time.

 

Touch is a trade which achieves and/or surpasses the target worth specified in the respective Binary Options contract.