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.
Asset is the subjacent asset that you invest in. This is the bedrock for all financial instruments.
- Assets value
The value of the asset – the buying price for the subjacent assets you wish to invest in within binary options.
- 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.
- Binary Options
They are options that allows the trader to earn a predetermined percentage share of the contracts value.
- Call or Put Options
It is the basis for the direction of your binary options contract…
- Commodity options
With commodity options you have to predict the evolution of a commodity – like oil, gold or wheat…
CySEC stands for – Cyprus Securities and Echange Commission…
- Digital options
This is another word for Binary Options…
- 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.
- Expiry price and Time of expiry
The final price and time for the contract when the contract deadline is reached..
- Foreign Exchange
Foreign Exchange is often mentioned as FX or Forex….
- Forex options
Trading with binary currency options…
- Investment amount
The amount of money that is invested on the contract.
- Payout percentage for binary options
The normal Payout – Pay-back percentage for binary options is between 70-80%.
What is Forex PIPS – Trading currency pairs – binary options
- 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.