Binary options trading terminology. Glossary Terms for Advanced – Learn the Following, too!

Review Asset The asset is the underlying tool or instrument that is chosen for binary options trading contract determinations.

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Assets can include stocks, indices, commodities and the different currency pairs you trade with. Current price The current price is the value the amount that is determined in almost real time and it is the opposition of the most price information that is in many cases delayed by a particular period of time — about 15 minutes.

binary options trading terminology

Time of expiration Usually known as expiry time, with this term we point to the electrum wallet reviews or the time, when the value of the underlying asset will be compared to the strike price in order to form the final outcome or your payoff. The strike price, in a few words, is determined by the underlying security price at the very moment when the binary option is purchased and the contract is made.

Once the binary option reaches its expiry time, the underlying security price must be compared to the strike price in order to see if the binary option has won, or lost its value, or in other words whether it is in the money or out of the money.

binary options trading terminology

Boundary instrument This is a kind of a tool that is applied by the traders in order to make the prediction about the underlying asset value — and to be more specific, whether this value will expire during or out of the set of ranges — simpler and quicker.

Glossary Terms binary options trading terminology Advanced — Learn the Following, too! Even though a little bit more specific, the following terms from our glossary are also important to be learnt, known and applied during your binary options trading activity.

binary options trading terminology

We divide our specially tailored glossary in two parts in order to simplify it for you, and to offer you a quick pause during your learning process. In general, the commodity is a physical object and it can be a precious metal — gold, silver and etc — as well as a manufacturing resource like cotton or even petrol.

Binary Options Trading - Binary Options Terminology Bids \u0026 Offers

Currency Currency is another asset binary options trading terminology you can trade with. Currency Price The currency price is the other name of the market price term.

binary options trading terminology

This is the present value of the underlying asset and it is always announced in real time — i. This is the total value you put into the brokerage e-wallet of yours to make trades with.

Investment amount When you purchase binary option to trade it, you pay a particular value and this is the investment amount.

Binary Trading Glossary

Return The return amount is the amount that you earn right after the purchased binary option expires in the money. The return value ranges according to the instrument you have traded with your binary. Stock A type of asset, this is the financial share of a company — for instance Microsoft, Samsung, Twitter — and etc which you trade with.

binary options trading terminology

To receive this money, you will have to make a withdrawal. Note that the withdrawal methods and terms and conditions are different between brokers, and depend on the broker you are trading in with binaries.

Binary Options Terminology

Charting With charting you practice plotting a binary option value at some very beneficial moment of time. Charting in general is a tool and it is a way of trading with binaries. Feel free to start your learning course with our helpful and very useful binary options trading glossary now!

Good luck!

Expiration Rate in Binary Options Asset — this is the underlying stock, commodity, currency pair or index, on which the binary option is based.

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