If you are looking for a binary options term that is not included here please let us know in the comments section at the end of the glossary.
Binary option
An option with only 2 possible outcomes. You will win a predefined amount if you finish in the money and you will lose a predefined amount if you finish out of the money. Most non binary options have the possibility of winning or losing any amount within a wide range.
Boundary
Boundary binary options ask if you think the value of an asset will be within a certain range, for example above 101 but below 104, at the time it expires.
Call
A call trade means you are investing in the price of the asset to rise from its current level by the time the option expires.
Entry price
The price of the asset at the time you opened your binary option. Same as target price.
Exit price
The price of the asset at the time your binary option expires. Same as expiry price.
Expiration
The time at which a binary option ends and is closed.
Expiry price
The price of the asset at the time your binary option expires. Same as exit price.
High/Low
High/Low binary options let you invest on whether the value of an asset will go up or down between the time you place the option and its expiry time. The most popular time frames in witch to trade on High/Low options are 60 seconds, 5, 10 or15 minutes, 1 hour and 1 day. The longest you are likely to see is 1 month but they could work with any time frame.
In the money
A winning binary option. If you put that the price of an asset will finish below the entry price any exit price below the entry price is in the money and you win. If you call that the price of an asset will finish above the entry price any exit price above the entry price is in the money and you win.
Out of the money
A losing option. If you put that the price of an asset will finish below the entry price any exit price above the entry price is out of the money and you lose. If you call that the price of an asset will finish above the entry price any exit price below the entry price is out of the money and you lose.
Payout %
The % of your investment you will win if your trade finishes in the money. You receive this in addition to your original investment being returned. For example if you invest ฿0.1 on an option with 81% payout and your option finished in the money you will win ฿0.081 in addition to your ฿0.1 investment being returned. If your option finishes out of the money you lose the ฿0.1 investment.
Put
A put trade means you are investing in the price of the asset to fall from its current leave by the time the option expires.
One touch
One touch binary options allow you to wager on whether the value of an asset will touch a certain price point before the option expires. The common time frames are longer than those for high/low with 1 hour, by the close of trading, 1 day, over the weekend and 1 week the most common.
These are usually offered on improbably high or low target prices (relative to the price at the time you take the option) so they can give a high payout %, typically from 160% – 500%.
Target price
The price of the asset at the time you opened your binary option. Same as entry price.
If you are looking for a binary options term that is not included here please let us know in the comments section below.
0 comments:
Post a Comment
Comment Policy: Thanks for choosing to leave a comment. Please keep in mind that all comments are moderated according to our comment policy, and your email address will NOT be published. Please Do NOT use keywords in the name field. Let's have a personal and meaningful conversation