Glossary for binary options

Before you test and make your first deal with binary options, it is a good idea to know all the facts. Study thoroughly the different terms and informations that is used in the financial world of binary options and online trading.

  1. Assets
    Asset is the subjacent asset that you invest in. This is the bedrock for all financial instruments.
  2. Assets value
    The value of the asset – the buying price for the subjacent assets you wish to invest in within binary options.
  3. AT THE MONEY, IN THE MONEY OR OUT OF THE MONEY
    These are the financial expressions that defines the outcome of your investment on different contracts.
  4. Binary Options
    They are options that allows the trader to earn a predetermined percentage share of the contracts value.
  5. Call or Put Options
    It is the basis for the direction of your binary options contract…
  6. Commodity options
    With commodity options you have to predict the evolution of a commodity – like oil, gold or wheat…
  7. CySEC
    CySEC stands for – Cyprus Securities and Echange Commission…
  8. Digital options
    This is another word for Binary Options…
  9. Dow Jones
    Dow Jones is an index containing 30 of the biggest american shares – The Dow Jones Industrial Average (Dow or DIJA) is the most well-known and the most followed American stock index.
  10. Expiry price and Time of expiry
    The final price and time for the contract when the contract deadline is reached..
  11. Foreign Exchange
    Foreign Exchange is often mentioned as FX or Forex….
  12. Forex options
    Trading with binary currency options…
  13. Investment amount
    The amount of money that is invested on the contract.
  14. Payout percentage for binary options
    The normal Payout – Pay-back percentage for binary options is between 70-80%.
  15. PIPS
    What is Forex PIPS – Trading currency pairs – binary options
  16. Strike Price
    Strike price is the price of the asset at the time of purchase. It’s used as a point of reference for judging weather a prediction was true or false.