Binary Options Terminology List
It is obvious that if you begin operating with binary options without the minimum of basic information, you have a very high probability of failing and wasting all your hardly earned funds. Thus it is necessary to start from mastering the terminology of options operating. In this article you will find explanations on such binary operating concepts as asset, broker, range rate, high or call option, in the money, rate of profit, technical analysis, and other terms.
Asset – Is the basing resource for the underlying options.
Binary option – It is hard to explain this concept in few terms. Actually, the binary options are the method of investing via Internet to get the set payback along with a set expiry time. Recently, they have become really famous due to the fact that they are rather easy and accessible for the ordinary users.
Broker – The company, which provides traders with a possibility to operate with binaries on the financial exchanges. Without broker, it is not possible to conduct a trade in this business.
Current rate – Demonstrates the value of the asset at this particular moment of time.
Range option –Also known as zone option, and is used to define particular zone, for instance.
Expiration time –The period of expiry of the option.
High also known as Call Option – The most popular kind of options, claiming that the value of the asset will go up.
Low also known as Put Option – The opposite concept of the previous term, which claims that the value of the asset will go down.
In the money – Indicates that your forecast about the direction of the value move was accurate and your deal was closed as beneficial one.
Out of the money – This is the opposite of the above mentioned concept and it indicates that you were wrong and the deal is failed.
Rate of profit – The per cent of the sum that the user will get when the deal is closed in-the-money.
Fundamental analysis – Demonstrates the method of analyzing the changeability of the resource on the basis of various circumstances, etc.
Technical analysis – The type of examination, which utilizes mostly the graphs in order to forecast the direction of the asset price move. In most cases it does not take the fundamental aspects into account and is basing its examination mostly on the recorded value information and capacity.