Terminology Of Binary Options

As traders begin to explore the world of binary options, it can be difficult to understand all of the different key words and terms that get bandied around. In order to fully benefit from investments in binary options, it is important for traders to feel comfortable in their understanding of these terms.

InvestManiacs advise you to use only reputable US binary options brokers. Try BinaryMate

Here are some of the top terms that you are likely to encounter as you invest in binary options:

  • Asset: An asset is the specific target whose value is followed by the investment. In most cases, this will be a stock, currency, index, or commodity.

  • Binary Option: The name binary option derives from a trader’s ability to choose whether the given asset will likely rise or fall in value within a specific window of time. Because there are only two choices for value fluctuations, the trade is binary.

  • Broker: A broker is a party that completes the investment transaction, usually for a fee.

  • Call Option: Also known as a high option, this term means that the trader believes the price of the asset in question will rise within the window of time specified.

  • Current Rate: This term refers to the market value of the given asset at the current point in time.

  • Expiry Time: When a binary option is implemented, traders specify the time at which the value will be re-examined to determine if it has risen or fallen. This is also known as the time of expiry.

  • Fundamental Analysis: Fundamental analysis is the type of research that a trader should perform in order to make an educated guess as to the future price of a given asset. This can include valuation of complementary or opposing assets, events within the financial market, or even the weather, depending on the asset in question.

  • In the Money: A trade is referred to as being “in the money” when the trader’s prediction of future value for the asset proposed within the binary option is accurate to the actual direction of the value fluctuation of an asset.

  • Out of the Money: This term refers to a situation in which the trader has not correctly estimated the direction of the value fluctuation of an asset.

  • Put Option: Also called a low option, this term is used to describe a trader’s prediction that the value of the asset in question will fall within the specified period.

  • Profit: Once a trade expires, the amount of money that the trader makes on the transaction is called the profit.

  • Technical Analysis: Traders who employ technical analysis use detailed charts to examine the history of an asset, using this information to attempt to determine the likely directional changes of the asset in the near future. It does not include an analysis of current market factors.


BROKER Details U.S.-friendly? Info RATING

Min. deposit:  $250
Min. invest.: $0.10
Return: 91%
Trading: Binary
Autotrade: GO!
Binary Mate
Binary Mate

Min. deposit: $250
Min. invest.: $1
Return: 92%
Trading: CFD, Forex, Binary
Autotrade: GO!

Min. deposit: $250
Min. invest.: $10
Return: 91%
Trading: CFD, Binary
Autotrade: GO!

More related articles:

 US Binary Options Brokers List
As you begin to venture into binary options, one of the vital things that you’ll need to figure out is what kind of brokerage service you will use. Fortunately, there are a number of brokers out there that are reliable and effective as trading partners.InvestManiacs advi...
 US Binary Options Brokers
Trading binary options in USA has become a popular way to invest and grow your funds or to supplement an existing investment portfolio. It is exceptionally easy to start trading; you simply need a basic understanding of the principles behind each option. Th...
 Trusted US Binary Options Brokers
Trustfulness is the primary factor, which you should consider, when searching for the options operating website. Operating in all kinds of formats and options is not something innovative, thus it is necessary to search for professional brokers, which offer ...
 Reliable US Binary Options Brokers
There are a limited number of binary brokers who are licensed and approved to offer their services to US based traders. If you are based in the US and looking for one of the US binary options brokers then it is important to consider the track record of any brokerage. It is imp...
 Recommended US Binary Options Brokers
If you're an US-based binary options trader is not so easy for you to find a trustworthy brokerage company since a majority of European brokers aren't accepted by strict regulation of your country of residence. However, times have changed and for now online trading is ...
 Legit US Binary Options Brokers
When looking for a broker that accepts US traders, you have to consider these aspects: trustworthiness, wide range of binary options for trading (as well as deposit options),payout percentage and quick release of withdrawals and payments. From among the list of US binary opti...
Binary Option Auto Trading





100% Secure