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Binary Options Glossary

 

 

Asset
A stock, commodity, index or forex pair.

 

At-the-money
If the option expiry price is similar to the option buying price than the investment amount is returned fully to the investor.

 

A binary options is one that offers a fixed return predetermined at the onset of the contract.

The main differences between binary options and traditional option is that Binary options are generally priced lower than traditional options.

This is because the payout for a binary option is fixed whereas the payout for a traditional option varies according to the value of the underlying asset.

 
Boundary instrument
An instrument allowing the customer to decide whether the underlying asset will at expiry be located inside or outside a specified range (formed by a lower and upper target price).
 

“Call” (Above) Option
An option that provides the trader with a fixed profit when the underlying asset is higher at the time of expiration than at the time it was purchased.

 

Current Price
The last price according to real time data unless otherwise is stated.

 

Digital Options
Another name for binary options, digital options typically refer to binary options that have fixed odds.

 

Early closure
Early closure refers to the ability of the investor to close an open position such that the option will immediately expire.
 
Expire level
The expiry level of the underlying asset at the time of expiry of the asset is based on a feed provided by data provider.
 

Expiry Time (Time of Expiration)
The time and date at which an option expires and the trade is determined to be in-the-money or out-of-the money.

 

Fundamental Analysis
Traders use fundamental analysis to determine how macro-economic factors will influence the value of an option.

 
High option
An option on a high/low instrument typically offering a 75% return if the underlying asset expires at a higher level than the option target price and 15% refund if the underlyring asset expires at a lower level than the option target price.
 
High/ low instrument
An instrument allowing the customer to dicide whether the underlyring asset will be above or below the target price when the expiry time of the option is reached.
 
Inbound option
An option on a boundary instrument typically offering a 75% return if the underlyring asset expires “inbound” within the rang formed by the upper and lower target values. In the case of the option expiring “outbound” outside this rang, 15% of the invested amount will typically be refunded.
 

In-the-money
For a Call option (Above / Below), when the strike price is above the market price for the underlying asset.
For a Put option (Above / Below), when the strike price is below the market price for the underlying asset.

 

Investment amount
The amount invested in the particular option.
 
Low option
An option on a high/low instrument typically offering a 75% return if the underlying asset expires at a lower level than the option target price and 15% refund if the underlyring asset expires at a higher level than the option target price.
 
Market price
The market price quoted by the binary Trade represents the current value of the underlying asset based on a feed provided by data provider.
 
No touch option
An option on a one touch instrument typically offering a 75% return if the underlying asset does not reach the target price during the lifetime of the option. Please note: should a no touch option reach the target price at any time during the lifetime of the option then the option automatically and immediately expires “out of the money” typically with a 15% refund on the investment amount.
 
One touch instrument
An instrument allowing the customer to decide whether the underlying asset will reach the target value during the lifetime of the optin.
 

Out-of-the-money
For a Call option (Above / Below), when the strike price is higher than the market price for the underlying asset.
For a Put option (Above / Below), when the strike price is lower than the market price for the underlying asset.

 

Outbound option
An option on a boundary instrument typically offering a 75% return if the underlyring asset expires “outbound” outside the rang formed by the upper and lower target values. In the case of the option expiring “inbound” within this rang, 15% of the invested amount will typically be refunded.
 

“Put” (Below) Option
An option that provides the trader with a fixed profit when the underlying asset price is lower than the price it was purchased at the time of expiration.

 

Portal

The term business portal is used to describe a feature on a company website that allows authorized users to access restricted content or information.Portal usually refers to a web site that acts as a gateway to other web sites. In other words, portals are Internet based sites that present information from multiple sources in a coherent fashion and that allow Internet users to access other web sites.As technology becomes more advanced, some of these gateways are also offering users the ability to customize their portal pages to fit their own individual interests and to see a several of binary options reviews. These sites can include everything from news about the Binary options to forex trading.

 

Range Option
One of the tree types of binary options available in Binary  trade rooms. With range options the trader must predict if an asset price will be “In” or “Out” of a predetermined range at the time of expiration.

 

Refund
The amount refunded to the investor after expiry of the option in the event that an option expires “out of the money”. The binary Trade typically refunds 15% in a case of expiry “out of the money”.
For example: an investment of 1000$ the refund will be 150$.
 
 Return
The amount refunded to the investor after expiry of the option in the event that an option expires “in the money”. The binary Trade typically returns 75% in a case of expiry “in the money”.

For example: an investment of 1000$ the return will be 1750$.

 

Strike Price
The price that an underlying asset much touch in order to be in-the-money or out-of-the money.

 

Target price
The target price (sometimes referred to as the strike or purchase price of an option) is the price at which the binary Trade is willing to “sell” an option.
 

Technical Analysis
Technical analysis is based on charts and statistics. Traders use technical analysis to predict the future movements of options based on their past performance.

 

Touch Option
With touch options the trader must predict if an asset price will touch a predetermined strike before the time of expiration.