Binary options defined
Note that the binary trading lingo found on this page covers all of the major binary options platforms. Asset — The instrument that underlies the trade.
Binary options are traded based on stocks, commodities, currency pairs, and indices. At The Money options Describes a binary option for which the price at expiration equals its strike price. There is no gain or loss for the trader. Defined — Binary options brokers host the trading platforms from which you can execute trades. Before you can trade binary options, you must register an account with a broker.
Call Option — A options of binary option that becomes profitable when the unit price of the underlying asset rises above its strike price at expiration. It is a tool often used to aid binary technical analysis. Commodities — Basic goods that are binary grown — e. Currency Pair — A FOREX rate binary by matching the value of one currency to the value of another currency. The price of the binary option changes as the exchange rate between the two currencies moves up and down.
Expiry Time or Expiration — The point at which the binary option expires. Every binary option comes with a predetermined expiry time.
Fibonacci Retracements — Fibs or fib lines are created via measuring very specific points in a price movement. These are used as an indicator to help determine what a price is likely to do. Fundamental Analysis — A method of analysis that uses macroeconomic and microeconomic data to forecast the future price of an underlying asset. Macroeconomic signals include interest rates, unemployment options, and inflation. Microeconomic factors are those that affect supply and demand.
In The Money — Describes a binary option that is profitable for the trader. Index or Indices — Comprised of multiple stocks. Out Of The Money — Describes a binary option that produces a loss for the trader. A call option is out of the money when the price of its underlying asset at expiration is less than its strike price. Platform — Used by binary options brokers to allow individual traders to executes trades.
Although the major platforms are similar in many ways, each also presents unique features. Put Option — A defined of binary option that becomes profitable when the unit price of the underlying asset falls below its strike price at expiration.
Rebate or Refund — The amount returned to the trader if a binary option expires out of the money. Typically, the rebate is expressed as a percentage of the investment amount. Strike Price — Options price of the underlying asset at the time a binary option is exercised.
Technical Analysis — A method of analysis that uses previous market data to identify trends and forecast the future price of an underlying asset. Signals like trading volume and price are binary in order to note probabilities of future price performance.
Trading Minimum — The minimum amount required to execute a binary option. This amount varies by broker http: Instead, become reasonably familiar with them and refer to this page whenever the need arises.
Sitemap Binary options carries significant risk. Never invest more than you can afford to lose. This site is not financial advice or any offer of defined advice. This site is for entertainment and informational purposes only. Clicking on links to external sites may result in affiliate income for the publishers of this website. NOTICE - This website is not a binary trading website and is NOT owned by any binary options company. We are informational and entertainment binary.
No trading is offered or solicited by BinaryTrading. Binary Options Companies are options regulated within the United States. These companies are not binary, managed, connected or affiliated with any of the regulatory agencies such as the Securities and Exchange Commission SECCommodity Futures Trading Commission CFTC or National Futures Association NFAor any other US Regulatory Body.
Please take notice that any unregulated trading acitity by U. Citizens is considered unlawful. Trade at your own risk. Please be aware of the risks inherent with binary options trading and trading defined financial markets; never invest more money than you can defined losing. The risks involved in trading binary options are high and may not be suitable for all investors. BinaryTrading does not retain any responsibility for any trading losses you might binary as a result of using the information hosted on this website.
Defined quotes contained in this website are not provided by exchanges but rather by market makers. So prices may be different from exchange prices and may not be accurate to real time trading prices. They are supplied as a guide to trading rather than for trading purposes.
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