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Binary options terminology. Binary Options Glossary & Terms

Binary Options: The Basic Terminology

Forex for beginners Binary Options Terminology A new binary trader and any person with an eye for binary trading should understand that terminology is a key and essential element of binary options. Newcomers need to have basic knowledge before they start trading, and the information they obtain has to be well-organized and clear.

binary options terminology

The optimal way to study binary options basics is to get a manual with distinct and intelligible content. It is not too hard to find relevant learning resources in the web in multiple languages. What you binary options terminology discover online regarding studying binary options basics of course is not restricted to just issue-related text books; you can as well obtaing other types of relevant information, e.

  • Words and phrases you will only see used in the context of that specific market.
  • How to make fast and a lot of money business
  • Binary Options: The Basic Terminology
  • Binary Options Glossary - Definitions of Binary Trading Terms –
  • Review Asset The asset is the underlying tool or instrument that is chosen for binary options trading contract determinations.
  • Note that the binary trading lingo found on this page covers all of the major binary options platforms.

Binary options trading is not as difficult as it may appear at first sight, especially if the new trader already has some theoretical and practical knowledge about it. Once you already know the binary options terminology, this means you already know the basics of this business.


Binary Options Key Terminology 1. This is the sum of money the client deposits on the account opened with a brokerage company to start trading.

Glossary Know About Common Binary Option Terms through Binary Options Glossary When you are attempting to carry out the binary options trading, you will come across many terms and phrases that you have not heard in your life before. It is very important for you to know some of the common terms and phrases used in binary options trading before stepping into the binary options trading league. The following are some of the most common terms and phrases that will help you get started and to do well in binary options trading. Ask Price This is the price that a seller is asking for an asset or a security or is the price that an investor is willing to binary options terminology from his end for the asset.

The money to buy options with. Binary option. The investor forecasts the trade direction: whether the value of a chosen asset will go up or down before the fixed expiration time of the option.

Binary options depend on the outcome of a "yes or no" proposition, hence the name "binary. At the time of expiry, the price of the underlying asset must be on the correct side of the strike price based on the trade taken for the trader to make a profit. A binary option automatically exercisesmeaning the gain or loss on the trade is automatically credited or debited to the trader's account when the option expires. That means the buyer of a binary option will either receive a payout or lose their entire investment in the trade--there is nothing in between.

Call Up option. Put Down option.

Binary Option

Strike price Exercise price. Basic asset.

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

Any financial instrument can be the binary options terminology asset, e. In the money. This means the trader gets profit after the option expires.

Binary Options Glossary & Terms

Out of the money. This is the opposite term meaning the result of an unsuccessful trade.

binary options terminology

In binary options a trader is free to choose expiration time of an option. This can be end of the month, end of the day, or end of this hour.

Binary Trading Glossary

The term means exactly this time. Option execution rate.

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It is estimated after the option is closed. Binary options terminology is set against the rate of the purchase price, and so it becomes clear whether the trader is in the money or out of pocket.

Once the trader has gotten through the basics, the time is ripe for real binary trading, which can well be successful.

binary options terminology

How to choose a binary options broker without mistakes, such as bumping up against dishonest fraudsters? Binary options, such as Anyoption or TopOptionhave good reputation, and lots of information about them and other companies can be found in the web. Moreover, it is possible to read binaries clients' reviews and to get acknowledged with brokers' ratings, thus getting the general idea.

Binary Options Terminology

Of course, every trader has personal preferences, so it is recommended to try the broker of choice first and only then to make the final decision.

In any case, decide in favor of reliable and trustworthy brokers known to your friends or contacts from practical trading experience.

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  3. So we have put together a comprehensive list of the commonly used terms along with lesser known references that you might find useful.
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  5. Glossary - All the terms you need to know when Binary Option Trading | Binary Option Insights
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