Before begin trading Binary Options, it is very important for you to understand the binary options trading technology. Read these main glossary terms -

Asset Class

In the area of Binary Options trading, this intends stocks, foreign currency, indexes, and commodities.

At the Money

A term use to explain an unbiased loss and gain as an outcome of the asset value at expiration.

Call Option

One of 2 option choices, in which the investor make a profit if the asset has a higher value at expiration than it did at purchase.

Current Price

The term current price is much use to contrast real-time accounting from most free price information which is frequently overdue by 15 minutes or more.

Digital Options

This is an alternative name for binary option and a form of option with a fixed loss and fixed payout.

Expiry Price

This term refers to the current price of the asset when the contract on the asset expires.

Expiry Time

This term refers to the date and time when the option expires.

Exotic Options

Binary options are basic version of exotic options which were traded on elite markets by brokers for years earlier they were accessible to the public as binary options.

Futures

A category of indirect securities constitutes a contract to either sell or buy some kind of commodity at once in the future.

Fundamental Analysis

One of the 2 main schools of analysis, utilized to analyse macroeconomic data such as national economic health, political events, central bank decisions or geologic events. At its middle fundamental analysis conceives that assets may be misprices momentarily but finally will attain their correct price.

Investment Amount

The sum of money invested in either a Call or Put option.

In-the-Money

This term depict an investor completing in a position where they make profit. In a Call option, it is in-the-money if the expiry price is high than the current price. In a Put option, it is in-the-money if the expiry price is low than the current price.

Out-of-the-Money

A term used to depict an investor in a position where they get a loss. An investor is said to be be out of money when in a Put option the price is higher than the bet price. In binary options, this normally results in a loss of 80% to 100% of the initial investment.

Payout

The profit made when a contract expires in-the-money. In binary options the payout is usually amongst 75% and 81%.

Put Option

One of the 2 option choice, in which the investor makes a profit if the asset has a low value at expiration than it did at purchase.

Strike Price

This a price at which the contract option for an asset can be exerted. In Binary Options, most frequently relates to the price-at-sale of the asset which is also the price utilized to check whether a contract expires in-the-money or out-of-the-money in an above-below option.

Touch Option

This an option where the trader should anticipate if an underlying asset price will touch a biased strike price before the expiration.