Glossary

60 Seconds Option

This refers to a Higher or Lower binary option with an expiry time of 60 seconds. 30 second expiry times are also now common.

Assets

The asset is the financial instrument that traders can trade in binary options. Assets in binary options include Indices such as the S&P500 , Forex pairs such as EUR/USD, Commodities such as Oil and Stocks.

At the Money

The term used to describe a binary option that expires at the same rate at which it was purchased. In this scenario the stake is return and no profit is made on the contact.

Bearish

The term used to describe a market or asset price that is moving lower over a selected time frame.

Boundary (range) Option

A binary options contract where a profit can be made from predicting if the price of an asset will finish inside or outside of two predetermined price levels at the expiry.

Binary Options Broker

A binary options brokerage is an online medium offering contracts to place on financial assets. Contracts are placed with the broker against a specified outcome at the agreed expiry time.

Bullish

The term used to describe a market or asset price that is moving higher over a selected time frame.

Call Option

A Call option is the name given to a contract where the trader predicts that the value of the financial asset will rise.

Digital Option

Another name for binary options dealt online.

Expiry Time

The set time when the binary option contract ends (expires). At this time the profit or loss is calculated and either added or deducted from the trading account.

Higher/Lower Binary Option

This is the most commonly traded binary option. The trader predicts whether the price of the asset will end higher or lower than the price at which the contract was purchased by the expiry.

In the Money

The term used to describe a binary option that expires in the traders predicted direction or range. In this scenario the trader receives the agreed payout on the contract.

One Touch Option

The trader predicts whether the asset will either reach touch or not touch a predetermined price by expiry. The trader receives the return at expiry (No Touch) or as soon as the level is touched (One Touch)

Out the Money

The term used to describe a binary option that expires against the traders predicted direction or range. In this scenario the trader does not receive the agreed payout and the contract expires worthless.

Payout

The realized profit that a trader will receive on the successful expiration of a binary option. Payouts are agreed at purchased and are expressed as a percentage return on the contract.

Put Option

A Put option is the name given to a contract where the trader predicts that the value of the financial asset will fall.

Strike Price

The Strike price is the rate is the purchase price at the time that the binary option was purchased. The success or otherwise of the contract is measured against this level at the expiry.