Glossary (Lexicon) of the trading

Underlying Assets

The underlying asset is the value at which a currency or other action is indexed to the broker. It is through this time value (volatibilité) that the binary option trading allows big return on investment.

Underlying Assets

Binary option

The binary option is an indexed contract on an underlying asset (stocks, forex, stock indices, commodities) and having a predetermined gain. The value of this option is variable and suffers increases or decreases as time passes. The purchase price is visible on the graphs in real time online trading platforms. It is possible to invest in 2 ways about binary options: upwards or downwards.

binary option

Option "High / Low" or "Call / Put"

The options "High / Low" are the most classic and widespread trading type. This is to predetermine if the short (price) of the share going up or down to invest. If at the close of trade, the value of the share, currency or index depending on what you have chosen, has followed your forecast your return on investment.

Option Hight/Low or Call/Put

Option Zone/Range

Another type of still based on binary options trading rules but offering more "extended". It is possible to invest in holding a "zone" of trading. Thus the expiration if the price is located inside "in" or outside "out" as you had defined you win the trade.

Option cible One Touch/ No Touch

Here you set a goal and bet on it. If you reach that goal, you win the trade.

Option cible One Touch/No Touch

Current list price or prices

Real-time price of currency or stock index action.

Current list price or prices

Expiry Price

The expiration price means the stock exchange, the value at which the action ended at the time of closing. This difference is given relative to the time where you spent the purchase order in comparison the price it had at the time of placing the order. At this time we are either "in the money" (we win) or "out of the money" (we lose).

Expiry Time

The time and date when the trade is closed. In the example on the homepage, trading sequences are carried out under 60 seconds, which means that the trade is finalized and results data after 60 seconds.

Expiry Time

In the money

This means that you have correctly predicted the outcome in the trade and that you will earn your ROI.

In the money

Out of money

Here is exactly what every trader wants to avoid. Finish "out of the money" means that prediction was not good and that the investment placed on the action is lost.

In the currency

On rare occasions it is possible to end up "At the money". If result is zero, that is to say, without gain or loss. If the action finished currencies or convenience when it expires at the same value at the time of purchase and investment is recovered in full.

Rate of return

Potential benefit that can win if we succeed the current trade. This is an estimate of the gains that we will win in case of victory. This allows to better measure the intact our decisions in our trading sessions.

Rate of return

Return on loss "return"

Interesting option that allows traders to partially recover the purchase price of a binary option.

Broker in Binary Options

A broker is a corporation authorized to accept transactions (sale / purchase) regarding binary options on stock markets. It is mandatory for an individual to go through a broker in order to speculate with the online exchange. Registration at the broker provides access to the trading platform and real-time charts.