Glossary

The most important lesson in any form of trading is the understanding of it various terms and this applies to Binary Options Trading too. Understanding different terms and the trading language is important when it comes to getting a grasp of the trading.

Given below are most common, popular and crucial terms used in Binary Options Trading:

Assets or Underlying Assets

Assets or Underlying Assets are different currency pairs like USD/GBP, EUR/USDetc, commodities such as OIL, GOLD etc, stocks like BMW, Facebook etc and indices like NASDAQ, BSE etc which a trader can trade on or place investment on.

At the money

If a trade, Call or Put, ends with the value of asset not being changed or altered from its original value the trade is said to end “At the Money”. For example, if an asset traded value of 45.874 ends with the asset still being at 45.874 at the expiration time, it is called “At the Money”.

Call Option

When a trader places an investment forecasting the upward movement of an asset it is called “Call” option. Selecting “Call” option means predicting that at the time of expiry, the value of an underlying asset would rise or exceed from its current value.

Commodities

Commodities are basically raw materials that can be traded as an asset in financial market like Binary Options Trading. These include Coffee, Oil, Wheat, Gold, Silver etc.

Currency Pairs

Currency Pairsrefer to the value of one currency against another currency, which are traded in the world financial markets. Traders can choose from different currency pairs such as USD/EUR, USD/GBP, GBP/JPY and more.

Current Price

Current Price is the value of an asset at the time of selecting the Call or Put option for trading that particular asset.

Digital Option

Binary Option is also known as Digital Option.

Expiration/Expiry Time

The time at which a trade expires and the value of an asset is compared against the Strike price to establish the trade payout is called ‘Expiry Time’. Every trader selects an expiry time while making an investment on an asset and this expiry time could vary from 60 seconds, 45 minutes, one hour and so on.

In the Money

If the trade ends with the asset value going towards the predicted direction, the trade is said to be ended “In the Money”. For example, if a Call trade ends with value of asset rising or a Put trade ends with value of asset decreasing; it is called “In the Money”.

Index/Indices

A grouping of stock data including a company’s productivity, financial growth, prices and performance. Examples of popular indices are NASDAQ, Dow Jones, BSE etc.

No Touch

No Touch is trading product in which if the value of a selected asset does not touch a predicted target value, before the expiry of the trade, it expires in the money. If the value of asset managed to touch the target value the trade expires out of the money.

Out of the money

If the trade ends with the asset value going against the predicted direction, the trade is said to be ended “Out of the Money”. For example, if a Call trade ends with value of asset falling or a Put trade ends with value of asset rising; it is called “Out of the Money”.

Payout

The money earned or won from a trade or investment made in a trade.

Put Option

When a trader places an investment forecasting the downward movement of an asset, it is called “Put” option. Selecting “Put” option means predicting that at the time of expiry, the value of an underlying asset would fall or decrease from its current value.

Stock

Stock in Binary Options refers to trading stock of companies that are traded everyday in the financial market. International companies like BMW, Twitter, Apple and many more put their stocks in the market.

Strike Price

Strike Price is the value of an asset or an underlying asset at the time when the investment is made. Trading brokers and traders compare the value of an asset at the time of expiry with the Strike price, to conclude if the asset has “expired in the money” or “expired out of the money”.

Touch Option

Touch Option is a trading product in which if the value of an asset touches a predicted target value, before the time of expiry, the trade expires in the money. If the asset value fails to touch or surpass the target value it expires out of the money.

Underlying Asset Types

There are 4 types of underlying assets – Stocks, Commodities, Indices and Currencies.

How to Trade ?

Asset Selection

Choose from over 180 assets for your Binary Options trading

Prediction

Predict the direction of the asset for the selected trade type

Investment

Invest the money for your online Binary Options trading

Trading

Click on 'Buy' to start your online Binary Options