Binary Options Terms

At the Money

When an option’s current status is at the money, it means that the target price of an option and the underlying asset price are identical. If a transaction expires at the money, the trader doesn’t incur a profit or loss as this is considered a break-even point.

Asset

An asset can be a stock, index, commodity or currency.

Binary Options

A binary option is an option with a pre-determined return rate available from the start of the transaction contract

Boundary

Boundary, or boundary instrument, is a type of trading instrument that lets a trader decide if the underlying asset price will be within or out of a specified range

Call

‘Call’ is what a trader chooses when they believe that an asset’s value will rise within the selected time frame.

Expiration (expiration) time

The time frame selected for the deal, after which the option expires.

Goal Rate

This refers to the price that an asset needs to reach in order for a trader to be successful in One Touch option trading.

Indices

An Index (plural: indices) represents a large collection of stocks. .

In the Money

If a trade expires and it is in the money, it means the trader made a successful prediction. If a trader selected with one-touch that a trade would reach the target price and this indeed happened at the time of expiry, the trade is in the money and the trader is refunded with the predetermined profit.

Lost Trades

Lost trades are the trades that an investor has not been successful with.

Market Price

The market price of an asset is the current value of the underlying asset that was provided by the data provider. This means it is the current value of the asset at which it can be purchased or sold.

One-Touch Option

One-touch options are trading options that offer a fixed pay-out to a trader upon an asset’s value reaching a predetermined level.

Out of the Money

If an asset expires out of the money, it means that the asset is currently not profitable due to an incorrect projection made by the trader about the asset value at expiry.

Put

A trader selects ‘Put’ on a binary options trade when they believe that the value of the asset will decline within the selected time frame.

Short-Term

A short-term option is a strategy used in binary options trading defined by a trade that lasts for only a short period of time.

Stocks

Stocks are bought by investors in order hold a certain percentage of a company.

Strike Price

This refers to the price that an asset needs to reach in order for a trader to be successful when using the One Touch option trading instrument. The strike price is determined by the current market value of the asset.

Trade Amount

The amount of capital used to purchase a binary options contract.

Volatile Assets

Assets which have an unstable value.