A

Above Option

Above options are a type of binary options. If you trade it, you have to guess whether the value at expiry will be above a predetermined price. It is set by the brokerage and is known as a strike price. If you have guessed correctly and the price of the underlying asset is higher at expiry than the strike price, you win.

Asset Level/Price

This is the factor that determines the positive/negative outcome of the binary options trade. Depending on user’s right or wrong prediction of the price movement, the trade is either winning or losing.

Asset Value

This is the specific price of each asset at the moment of the trade’s placement on the market. If the value of the specific assets changes Up or Down for a set period of time, it is important tha the investor had predicted this correctly in order to win the trade, otherwise they lose the invested money.

B

Bear Market

The Bear Market is characterized by a continuous decline in the value of the underlying assets. It is typical for markets in recession and traders can make a lot of profits from the moment in which the market changes directions and prices start climbing again. The steady long-term decline is also basis for executing consecutive Put options before the moment the market starts a recovery.

Below Option

A type of binary option, similar to the Above option. In this case, you act on the guess that the price at expiry will be below a predetermined strike value, given by the brokerage. A correct guess will result in a profit.

Bid/Ask Spread

The term bid/ask spread refers to the difference between the rates of a particular asset’s price depending on the fact if it is the creator of the market’s official one or that for an immediate sell. It is used to reflect this variation depending for all four main asset types.

Binary Options Contest

This is a kind of online trading contest where the participants measure their skills and average success achieved for a specific time period. Once the contest is over there are different prizes for the winner, which is acknowledged as the best trader.

Binary Options Demo

Demo binary options usually refer to the practice related to demo trading process which doesn’t involve real funds but virtual amount of capital. It is suitable for inexperienced traders that need practice in order to become more proficient in this type of online trading. Broker platforms often offer demo trading accounts to their customers.

Binary Options Guide

The meaning of this phrase is referred to the fact that there are many people who don’t have any binary options trading experience. These newcomers need guidance. Therefore, the most proficient auto-trading robots and brokers offer to their members a guiding section where people can learn the basics before to start their trading process.

Binary Options History

The binary options history dates back to 2008. Circumstances that led to the Global Financial Crisis which started during the same year made a lot of people lose their jobs and thus – seek alternative methods by which to amplify their monthly and yearly income. The first automated trading robots followed very soon. They have since undergone various updates and rennovations.

Binary Options List

The list of available assets each particular binary options trading platform provides. Usually this list is divided in 4 main classes as are the tradable assets: currencies, indices, commodities and stocks. The longer assets’ list means the more trading options for investors.

Binary Options Live

In some particular binary options systems and broker platforms, there is a section where users can watch some live trading results that just took place on the market. This is educational tool which may help investors better orientate to what and how to trade.

Binary Options News

It is very good for every users to keep up with the latest binary options news. They could concern the legit or scam status of a particular trading platform or just be general information about market and assets’ price movements.

Binary Options Online

Investing and earning daily profits by dealing with binary options online has become increasingly attractive business to investors and individuals. Since 2008, many traders started to invest in equities, currencies, commodities and shares. Due to the fact that this type of trading consists of 2 available options, hence the use of the term “binary”. Basically, it means that a trader places a bet on whether some specific asset’s price changes in “Up” or “Down” direction for a fixed time frame.

Binary Options Payout

There is one really useful feature that is available in binary options online trading. It is that every broker platform shows the percentage of the profit per trade. This depends on the final outcome of the specific placed trade. If it is a winning one, there is additional amount of generated profit which is added to the initial investment amount. This creates the total payout for every single trade.

Binary Options Practice Account

A binary options practice account is the same as the demo one. What it basically means is that the user has where to exercise his trading abilities by using digital monetary amounts instead of actual ones he has placed. Legit binary options investments brokers usually provide them to users who are novice and inexperienced. By using such an account, one can learn to better exercise their skills before commencing the real process.

Binary Options Profit

This term refers to the monetary sum a particular user has acquired when executing a successful trade. It does not include losses or any bonuses that might have been provided by the platform, just the winnings from a particular financial operation.

Binary Options Risk

Every financial operation that is carried out online, not just a binary options one in particular, involves some level of risk. Even everyday Wall Street investments do. This is mainly due to the high level of volatility that the market generally maintains. An unexpected event might always occur and make a particular asset’s price move up or down. Surprises such as this one actually occur quite often. This is why many binary options robots and brokers offer a different number of risk-free trades depending on what account type the user has. Not only that, some even have stop-loss features and other means by which one can control possible damage.

Binary Options Testimonials

Binary options testimonials are basically statements issued from satisfied or dissatisfied users in order to certify whether a particular system, broker or robot is a legit or scam one. They can be in many different interactive forms such as video, sound or written ones. Generally, traders should not rely solely on them when determining whether they should get started with a platform or not as they can easily be fabricated or faked.

Binary Options Trading App

A binary options trading app is an online robot, system or platform that is available as a free download on a given smart device. This way, users are enabled to invest from anywhere, no matter which part of the world are they trying to do so from. Most software designs their binary options apps in such a manner that they function equally well on any given device – no matter if it is Mac, PC, iOS, Android or any other. The only things that is required out of the online investor is to have a stable Internet connection.

Binary Shares

Another term which is used for describing the underlying assets which users can pick from and place a trade are binary shares. They can be any of the four main categories: stocks, indices, commodities and currencies, but mainly refer to the first one.

Binary Trader

A binary trader is any person who endulges in executing financial operations with the use of investment robots, signals providing systems or brokers. It does not matter whether one will choose to do so on manual or automated mode.

Binary Trading Account

A binary trading account can be opened with an online brokerage or robot. The different ones offer different bonuses and special features according to the monetary amount one has placed in the form of an initial deposit with a particular income generating platform. Most ususally provide personal Account Managers who take care of everything instead of the trader.

Binary Trading Platforms

Binary trading platforms can be accessed by users online and most of them are available as an app for free download. They are basically the core of every robot software, providing users and creators of systems a virtual place where trades can be executed freely. Some platforms are designed by the founders of robots, while others are readily available as products.

Binary Trading System

In the past, trading systems represented different strategies applied to a particular economic situation. Nowadays, they are adjusted and modified in such a manner, so that they can be implemented into online software and apps that allow every users to trade from every spot on the planet. Basically, a binary trading system is one which could be successfully put into use in this type of Internet investments.

Bonus

A binary options bonus is a monetary amount provided by the particular online broker platform a user has chosen to open an account with. Most offer one-time Welcome Bonuses for each new member that signs up. There are basically all kinds of monetary stimulations and awards and their size increases the higher sum one is willing to place as an initial deposit.

Breakout

In the financial field the term breakout is related to a price movement of an asset through an identified level of resistance. Usually, this is followed by increased level of volatility. So, investors buy the underlying asset only if its price manages to break above a level of resistance or when it breaks below the level of support.

Broker

The binary broker is your main partner in trading options online. Brokers are providers of trading platforms where you can buy and sell assets.

Buy to Open

Buy to Open is a particular investment type, in which the trader has already bought a call or put option and is ready to make it available for selling to other users. This involves the so-called long position, refering to the fact that the seller has preliminary purchased the option he is willing to put on the virtual market.

Buying Options

This is the most basic way of conducting a trade online. When users choose to buy a call or a put option they are in possession of, respectively, a long call position or a long put position. Their expectations are that the particular asset’s price will do far in the predicted direction, so that they are able to top the paid amount and earn an extra profit.

C

Charting

I the field of binary options online trading, charting is actually the current movement of each asset’s price. This is also the main indicator traders follow in order to decide how to trade.

Close

The term close refer to the exact time at which a particular trade reaches its expiry time. It could also mean the precise hours at which a particular stock exchange, like the New York, London or Tokyo one, cease all financial operations and declare the trading day to be over.

Currency Pair

A currency pair is basically any trade that is placed on a particular currency combination. Users have to choose whose price will increase or decrease in relation to the other. This is one of the most basic types of binary options trading. The most popular pairs include GBP/USD, USD/CAD, USD/JPY, EUR/USD, USD/CHF, AUD/USD and others.

Current Level

This term refers to current level of the market at the time a position is openede. It could refer to a particular stock, currency pair, commodity or indice. Basically, this is the starting price of an option, from thereon it can go up or down, but in the beginning it is always set.

D

Day Trader

People who buy and sell assets within one trading day, before the closing of the markets. These traders are also known as active traders.

Digital Option

This term refer to any kind of option that has a pre-determined payout after the underlying asset begins exceeding the strike price. In simpler words, this would mean any type of binary options because the trader either wins or losses a certain monetary amount.

Double Up Feature

This is a feature that is now available on many binary trading platforms. Its uniqueness is in the fact that it allows traders to replicate a winning trade and conduct it again in order to increase their profits.

Dow Jones Industrial Average (DJIA)

This is one of the main trading indicators used by every experienced investor. It was coined by Charles Dow and is nowadays used mainly in the Bull and incide market sectors.

E

Early Closure

Early Closure is the moment when you can close a trade before the expiry of the preliminary contract of the option.

EMA’s (Exponential Moving Averages)

An indicator of technical analysis. EMAs give more weight to the latest available data, thus they are able to react faster to recent changes in prices. They are also called exponentially weighted moving averages or EWMA.

Equity

Equity is basically the financial or monetary worth of a particular asset after you take away from it that of the liabilities. A simple mathematical representation of this would look like the equation: Asset – Liabilities = Equity.

Exchange Traded Options

This is an option traded on a regulated exchange with terms that are standardized by the exchange. The result is that the underlying asset, expiry, quantity and strike price are known in advance.

Exercise Price

This is the exact monetary amount at which a particular security can be either bought or sold. It is not necessary for the exercise price to be determined preliminary to the execution of the financial operation.

Expiration Date

The term Expiration Date can refer to the last day when a futures contract is valid in long-term trading operations or the exact time at which a binary options investment reaches its end point when speaking of shorter term operations.

Expiration Time

Predetermined time and date at which the options will expire. A lot of offer brokers both early closure features and short-term options. That’s why you have to clearly know the exact expiration time of a trade in order to make the most profitable decision possible, given how volatile the markets are.

Expire Worthless

This would mean that a particular option has entered a trading operation Out of the Money and has ceased to exists. In situations where the asset has expired worthless, it will disappear from the investor’s account.

Expiry Price

This terms means almost exactly the same as the strike price. The two are very similar. It basically describes the price of the asset at question based on and according to the current market one at the exact time of the option’s expiry time.

Extrinsic Value

When estimating the value of a particular option, one can take forward several different factors: internal ones (intrinsic), external ones and a combination of both. The extrinsic value is thus classified as time and volatility value, while the intrinsic one is the current one. The total option value is the sum of the internal and external one.

F

Financial Instrument

This is any type of contract which involves some kind of monetary agreement. One of the sides in question might be the obligated one, while the other – the receiving one. It could also indicate that one of them has proprietary rights.

Flip

This would refer to the act of buying a particular option low and selling high in a considerably short period of time. It could be an asset from any of the fou main categories: indices, commodities, stocks or currency pairs. This is also a practice often used by investors, especially ones that dwell in the real estate sphere.

Future Options

The term future options refers to any type of asset the contract for which expires in the future. The person who would like to purchase such a financial tool is entitled to assume what the strike price would be at the exact moment before the expiry time is reached.

H

High-Low Option

A type of binary option contract that suggest you will be placing trades either choosing that the future value will be greater (High) or lower (Low) than the one at the moment of executing the trade.

I

Inbound Option

A binary options type which is traded between upper and lower boundaries, predetermined by the trader. You get an inbound option when the contract expires between these boundaries.

Index Futures

A financial contract which involves the purchase of a range of assets, delivered later, but bought on a previously agreed price.

Index Trading

Basically, index trading revolves around indices and stocks of big companies, organizations and corporations. The said are mainly from several distinct and profitable sectors: telecommunications, technology, finance and others. The Asian part of the market is known for being highly volatile.

Inflation

Almost everyone in the world has experienced some drastic form of inflation. It is basically when the price of a particular currency, goods, stocks or assets begins to dramatically increase and continue to do so for an etended period of time. When this occurs in many regions around the world, it is called global inflation.The opposite proces is called deflation.

Intrinsic Value

The intrinsic value of a particular company or asset is basically its actual worth. It is mainly used when referring to and addresing the nominal price of a particular option in order to estimate its in the money monetary value.

Invested Capital

This term describes all the capital and sums that have been put into or invested into a particular company. The accounting name of the establishment is not taken into account, only the monetary sums that help for the generating of operational revenue.

Investment Options

Basically, these are any type of investments in which a particular asset is purchased by one of the sides or sold to the other. The buyer has the right to keep the shares or put them up for trading. The price and exact time frame of the financial operation is pre-set. Investment options are mainly used to describe any put or call procedure.

IPO

Initial Public Offering is the act of offering a privately held company on the stock market in search of public investors. After an IPO, the company becomes public.

L

Last Day of Trading

In the financial field the final day of trading is actually the last time period where a futures contract may be active before it is closed.

Leading Indicators

The leading indicator is the main one used for the prediction of market movements. While the lagging indicators are most commonly used in order to analyze something which has already happened, this type is used as a type of forecasting technique and strategy. It is very popular and widely applied in binary options.

Leverage

To leverage is the act of borrowing capital for the purpose of increasing potential returns. Leveraging carries high risks.

LIBOR

The abbreviation stands for the London Interbank Offered Rate. It is an average interest rate of the rates at which banks could borrow from one another.

Long

A Long, or Long Position as it is most well-known, is the purchase of a particular security, which could be an asset, stock or currency, with the intention to sell it when its value and price rise. This is the definition of the term when it comes to finance in general. In options trading, the investor who has bought the particular option has the right to sell it for a preliminary specified monetary amount and within an exact time frame or a set date.

M

Mid Market

The Mid, or Midlle Market is the one in which stocks or indices of large companies and corporations are being traded. The estimated NET revenue per year of the latter has to be anywhere between $50 million and $1 billion. Some financial institutions consider that the lower bar should be dropped and that the Mid Market should include institutions whose yearly profits add up to $5 million.

N

Non-Farm Payrolls (NFP)

Monthly US reports of the Bureau of Labor Statistics. It represents the number of paid employees, excluding people on government jobs, in non-profit organizations, private household jobs and farm employees.

O

Offer

In finance, an offer would mean the expressed desire to purchase a particular asset and make it available for buy or sell at a pre-determined price.

Option Builder

This is an innovative option that is now available for online traders. It offers to them the possibility to take advantage of a unique management technique. You can adjust the risk factor yourself by defining a payback in case of losing trade. However, this affect the end profit of the deal as it decreases as traders increase their payback level.

Option Contract

This term would go to describe any type of contract which allows for the guaranteed and successful conduct of a trade with a pre-set price and expiry date or time. It is usually concluded between two parties, even though there could be more if the agreement is between a binary options system or broker and its users.

Option Straddle

This term is also known as buy straddle. It is basically a neutral strategy in binary options online trading which involves the simultaneously buying of both Call and Put options of the same underlying asset. This type of trading features unlimited profit and limited risk at the same time. It is used in cases when the investor believes that the underlying asset will experience significant volatility in the near term.

Option Strategies

These are different buying or selling strategies applied to one or more options that differ in one or more of the options’ variables. The main options in the field of online investing are Call and Put, also known as Up and Down options.

Option Writer

This term mean that a trader opens an option position with the sale of one or more contracts to an option buyer. In case of writing a call option, the seller agrees to deliver the specified amount of underlying shares to a buyer at the strike price that is pointed in the contract. On the other hand, the seller of a put option agrees to buy the underlying shares.

Options Chart

This term refers to the graphical representation of a particular asset’s price movements. The different indicators by which the latter is determined are displayed in different colours. It is very important for traders who prefer to trade on manual mode to view a certain amount of charts in order to get a better perspective of how the market situation is.

Options Trading Tools

These are all the useful features that online investors use in order to grant themselves higher and more stable profits. The different binary trading platforms offer to the customers different trading tools. However, there are some of them which are absolutely obligatory for every single binary trading system.

Out of The Money Option

Out The Money suggest a situation in which your investment is about to end with a loss or has been lost at expiry.

Outbound Option

With this type of option the trader speculates whether the asset price at expiry will be outside predetermined value boundaries.

P

Pricing Binary Options

Attempting to give an option a fixed price is a very complicated process. Experts or calculating software have to take into account several factors such as: time frame, pre-determined price, expected payouts, intrinsic value, etc. There are different models which combine all of the listed.

Purchase Price

The Purchase Price is the price at the moment in which a trade has been placed. It is compared with the price at expiry to determine whether the trade is a win.

Q

Quote

A quote gives market data on tradable assets. It relates to the last price at which a commodity or a security has been traded; refers to both over-the-counter and exchange-traded financial instruments.

R

Range Trading

The trading of options, called Range Options, within a predetermined range.

Rebate

This is a type of cash-back situation in which a proportion of your investment amount is credited back into your account in case the trade is losing.

Relative Strength Index (RSI)

The Relative Strenght Index, or RSI for short, is a comparative indicator, applied mainly for the prediction of asset price movements. It was created by Welles Wilder and basically correlates the amounts of gains and losses over a pre-determined time frame. This method is extensively used not only in binary options, but also in many other financial fields.

Return

The term return describes the expected return on initial investment that the user can expect when signing up with a given binary options system or opening an account with an online broker platform. RoI is very important as it can give the trader a better perspective of the capacities and parameters of the software itself. The average rate would be somewhere between 70% and 80%.

Reuters

An international news agency, headquartered in Canary Wharf, London, UK. Property of the Thomson Reuters Corporation – a Canadian multinational mass-media company.

Risk

In the specific field of binary options trading online, risk i something that is really relevant and should be considered by every trader. The risk levels are usually high and this defines the whole trading process of each binary online investor.

S

Selling Put options

Traders prefer to use strategy if the outlook of the specific placed trade is that it is going to rise. The purchaser of a put option pays a premium to the seller for the right to sell the shares at a price which is agreed upon and in case that the price takes the down path.

Short

Short refers to the act of shirt selling of a particular asset. This involves mainly securities, but not necessarily. Other financial instruments can be involved as well. Usually, they are not part of preceeding possession.

Slippage

The term slippage refers to the actual price of an asset at the time when a trade is completed which is compared to its expected rate beforehead. If there is a big difference between the two, then this means that there are present rapid shifts and market movements.

Spot Market

The Spot Market has some relation to the futures market, but they are not exactly the same. Also known as the cash market, it goes on to describe only financial operations that are immediately carried out.

Spread Trading

Spread trading describes the process of buying a particular security and then immediately selling a related one. The sold asset is called legs and is usually, but not always, traded with a futures contract.

Stock Trader

A stock trader is any person who participates into online or real-life financial operations on the stock market, which is also known as equity or share market. The assets may feature privately or publicly traded securities. The actual stock trader can act as a hedger, speculator, investor, stockbroker or speculator.

Stocks

This is one of the 4 main types of tradable assets in the field of binary options. Stocks can be different companies’ shares and their value is the thing that is debatable in bets.

Stop Order

A stop order is the exact same as a stop loss order – an asset’s price has to arrive at a predermined rate in order to be bought or sold. This refers mainly to stocks, but may feature indices, currency pairs or commodity as well.

Straddle

This term refers to a specific trading strategy in which the holder of a particular option can experience a profitable outcome without view if the asset’s price will go up or down. The only requirement is for the movement to be rapid and drastic. The owner has to hold both a call and put position and pay a premium for both of them in order for this to happen. Another factor is that the trader has to specify both the exact time the options will end and the amount of the trike price.

Strangle

A Strangle is one type of options trading strategy in which the investor can possess both a call and a put option of the same asset and have odds for accumulating success. He has to guess the different strike prices, but the same level of maturity.

Support Level

This is the history of a particular asset’s price on the base of which future predictions of its movement can be made. Basically, it represents the level below which the particular option has never fallen. An interesting fact about it is that this is the level at which a particular trader enters the investment process.

T

Touch/ No Touch Trading

Touch and No Touch trading operations require the user to apply simple moving averages, or SMA for short, investment strategies. These types of options are ideal for the forecast of future market volatilities and movements in asset prices.

Trading Hours

The trading hours of a particular binary options system or platform depend according to which stock exchange does it operate to. The most common schedule is the one corresponding to the New York Stock Exchange. Other possible scenarios include those concerning the ones located in London, Tokyo, Shanghai or Hong Kong.

Trading Range

A Trading Range is most commonly understood as the average estimated between an asset price’s highest and lowest point during a pre-set time frame. It can be clculated on hand using a mathematical formula, but using a software is much easier and saves time.

Trading Stocks

Trading stocks are basically all of the different companies that make their shares available for free investments on the stock exchange. Good examples of this are Google, Apple and McDonals, but even smaller firm can put their stocks up.

Turnaround

A turnaround is the exact term used to describe the process of market rehabilitation of a particular company after an extended period of losses and decline of its stocks’s price. It means that the firm has returned to normal operation and its shares’ value is rising.

V

Volatility

Generally, this term goes on to describe rapid movements in a particular asset or a group of such’s price. This causes the whole market to undergo rapid movements and may have an effect on the economy of various countries.

W

What is a Binary Broker

Binary brokers are the platforms traders should work with in order to get access to the trading process.

Y

Yield

Yield is a financial gain, a return on investment, i.e. dividends on a security you own.