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Binary Options Glossary

Most Frequently Used Phrases in Binary Options Glossary

Binary options glossary will provide you with all the terms and their meanings which are frequently used in Binary Options Trading. This is a type of online trading which gives you digital returns. If you are in the right side then you will get your return but if you are in the wrong side you will make nothing. It is also recognized as fixed return options or all or nothing options.


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Binary Options glossary for Binary Options trading is as goes.

Asset

It is the instrument on which you will base your entire trade on. It can be stocks, commodities, Foreign Exchange or currency pairs, indices etc.

At-the-money

It is a term described when at the expiry time of trading you get no return but you also do not lose anything because the price of the asset does not change through the entire trading period.

Call option

This is the choice made by the trader out of the two options given in which the trader has full confidence that it will provide him with a return on his investment.

Current Price                                                                                          

 This is the price of the asset got from reports in real time. It is used to differentiate between real time prices and free market prices of the asset. The latter is delayed by fifteen minutes or more.

Digital options

It is another term for Binary options which has a fixed return as well as fixed loss.

Expiry Price

This is the current price of the asset when trading closes according to the chosen expiry time by the trader. So whether you have made some money out of your trading depends solely on this expiry price of the commodity in the above/below kind of trading.

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Payout

In the Binary option glossary this has been elucidated clearly that this is the return one gets if their trading ends in an escalation of the asset price. In Binary options this return is as high as 84%.

Over-the counter

This is referred to the products sold directly between two separate groups. In Binary options trading occurs over the counter without the interference of any broker as happens in exchanges.

Out-of-the-money

This is referred to the situation in which the investor makes a loss i.e. his ending price is less than his current price if the contract was of a call option and vice versa for Put option. The losses are pretty steep in Binary options trading.

In-The Money

This is referred to a situation where in the investor makes a profit. The call option contract will ask for the ending price to be higher than the current price and vice versa for put option contract.

Investment Amount

The amount of money invested in any of the contract options like call or Put. Basically your profit will be a percentage of this or your loss will be a percentage of this.

Binary Options Glossary consists of other terms but it was beyond our discussion here

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