At The Money

This term is used in binary options to describe the event in the closure point of a position in which the strike price and current market price are identical – resulting in neither a winning nor a losing trade. There are three possible outcomes for any position: ‘At The Money’, meaning the trader has neither […]

Binary Option

A binary option is a sort of option which guarantees a fixed return amount in the event of a successful trade. Unlike traditional Forex trading where profits and losses are progressive depending on the precision of one’s prediction down to the last decimal point of an underlying asset’s rate, binary options trading has a fixed […]

Boundary Instrument

A boundary instrument is a binary options tool through which a trader needs to speculate on whether a certain asset will arrive at a rate that is inside or outside of a predetermined extent of values by the expiry time of the option. A usual case of conventional binary options trading revolves exclusively around speculating […]

Early Closure

An Early Closure is a tool that is only offered by certain binary options brokers, giving their customers a chance to pull out of their trade ahead of the predetermined expiry time. When trading binary options, people who trade are ordinarily unable to close their position before the expiry time. Some brokers, however, have developed […]

Expiry Time

The Expiry Time of a trade is the date and time at which a traded position expires.   When trading binary options, an option on a certain asset is always opened and closed at a specific time. The Expiry Time designates the hour and minute at which the trade expires at the end of the […]

Expiry Level

The Expiry Level of a trade is the rate or price at which an asset expires. The terms ‘Expiry Rate’ and ‘Expiry Price’ depict the same thing can equally be used.   When trading binary options, an option on a certain asset is always opened and closed at a specific market rate. The Expiry Level […]

High Option

A High Option, which can also be called a Call Option, is an option which offers a return on investment of up to 85% in the event of an underlying asset expiring at a higher rate than the strike price.   Typically traded on a High/Low instrument, when trading binary options one places a High […]

High/Low Instrument

A High Low Instrument designates a binary option which gives traders the choice of speculating on whether an underlying asset’s expiry level will be higher or lower than the strike rate. This Instrument is most commonly known by its aforementioned title but can also be called ‘Call’ (High) or ‘Put’ (Low).   The level at […]

Inbound Option

An Inbound Option is a binary options tool in which a trader needs to speculate on whether a certain asset will arrive at a rate that is inside of a predetermined extent of values by the expiry time of the option.   Conventionally speaking, binary options trading revolves around the act of speculating on whether […]

Investment Amount

An Investment Amount is the sum of funds an investor places in a single option when trading binary options.   The Investment Amount must under no circumstance be confused with the Deposit Amount, which is the sum of money one must place into one’s binary options trading account, through a variety of payment methods, in […]

In The Money

This term is used in binary options to describe the event in the closure point of a position which marks a winning trade.   There are three scenarios for the outcome of an option: ‘In The Money’ (meaning the trader has made a profit on top of the initial investment), ‘Out Of The Money’ (signifying […]

Low Option

A Low Option, otherwise known as a Put Option, is an option which offers a return on investment of up to 85% in the event of an underlying asset expiring at a lower rate than the strike price.   Typically traded on a High/Low instrument, a trader trading binary options places a Low Option when […]

Market Price

The Market Price indicates the current value at which an underlying asset can be bought or sold.   One of the most basic rules of economics theory dictates that the Market Price is coincides at the point where the levels of supply and demand meet. Any changes made to the levels of the supply or […]

No Touch Option

A No Touch Option is a binary options tool in which a trader needs to speculate that a certain asset will not arrive at a predetermined rate during the whole duration of the option’s lifetime.   Binary options trading usually revolves around the act of speculating on whether the expiry price of an underlying asset […]

One Touch Option

A One Touch Option is a binary options tool in which a trader needs to speculate whether or not a certain asset will arrive and/or surpass a predetermined rate during the option’s life duration.   Binary options trading usually revolves around the act of speculating on whether the expiry price of an underlying asset will […]

Out of the Money

This term is used in binary options to describe one of the three possible outcomes of a position. This one designates a losing trade. There are three scenarios that can occur when an option expires: ‘Out Of The Money’ (indicating a loss), ‘In The Money’ (meaning the trader has made a profit on top of […]

Outbound Option

An Outbound Option is a binary options tool in which a trader needs to speculate on whether a certain asset will arrive at a rate that is outside of a predetermined extent of values by the expiry time of the option.   Conventionally speaking, binary options trading revolves around the act of speculating on whether […]

Refund

A Refund, also known as a ‘rebate’ or a ‘cash back’, designates a small percentage of money that is returned to an investor after having suffered a losing trade.   In binary options, a trader usually loses all of the invested amount if the trade expires Out Of The Money. However, some brokers offer their […]

Return

The term Return refers to the percentage of the amount of invested funds that an investor receives when trading binary options, should a trade expire In The Money.   When trading binary options, a trader will place a trade that will always have a fixed return rate which will be known to him/her before the […]

Target Price

The Target Price is the price of an underlying asset at the specific time at which a trader opens a position when trading binary options. Other commonly used similar  terms are ‘Strike Price’ and ‘Purchase Price’.   At the expiry time of an option, the Target Price is ultimately compared to the Expiry Price of […]

Touch Option

A Touch Option is a binary options tool in which a trader needs to speculate whether a certain asset will touch (arrive) a predetermined rate during the option’s life duration.   Binary options trading usually revolves around the act of speculating on whether the expiry price of an underlying asset will be higher or lower […]

Underlying Asset

An underlying asset is a financial instrument which a trader invests in, when trading binary options.   A binary options trader has the option of trading any underlying asset a broker offers, including commodities (Gold, Silver, Brent Crude, etc.), currencies (USD, EUR, JPY, etc.), indices (NASDAQ, FTSE 100, CAC 40, etc), and stocks (British Airways, […]

Underlying Asset Types

When trading binary options, a trader has the choice between four different underlying asset types. An underlying asset is a financial instrument which a trader invests in, and most (if not all) brokers will provide their clients with a list of four underlying asset types to choose from.   A binary options investor has the […]

Stocks

  Stocks are singular companies which, when combined, form a given index. In traditional stock market trading, an investor only makes money if the stock is sold at a price higher than the buying price.   In binary options, however, things work differently. A binary options trader can make money from trading stocks by simply […]

Commodities

Commodities are made up of a list of valued raw materials which are worth trading for any investors to make profit. The list includes gold, silver, oil, and coffee, copper, corn, palladium, and many others. The index value of these particular assets has been set in US Dollars, and is most commonly traded with this […]

Indices

In essence, indices are comprised of a group of stocks. The most common global ones include the Dow Jones (USA), the NYSE (USA), the S&P 500 (USA), the FTSE (UK), the CAC 40 (France), the Nikkei 225 (Japan), and the NASDAQ 100 (USA).   There are over 100 indices worldwide, all of which are tradable […]

Currencies

Currencies are forms of money which are issued by governments and which are commonly traded in binary options and Forex.