Trading Terminology
If you are new to binary options trading then you may not be fully familiar with all its terminology. As such, here is a list of its most commonly used terms.
Ask Price
at which an underlying asset of a binary option can be purchased.
Asset
Binary options are based on underlying assets, which can be stocks, commodities, indexes or Forex currency pairs.
At-the-money
If the price of a binary option at its expiry time is exactly the same as its opening or strike value, then investors will receive full refunds of their entire initial deposits.
BID Price
This is the price at which an underlying asset of a binary option can be sold.
Call Option
This binary option will generate a pre-determined profit for you if the price of its underlying asset is higher at its expiry time than its opening or strike price.
Current Price
The last reported real-time price of the binary option’s underlying asset unless otherwise stated.
Expiry Price
The real-time price of the binary options underlying asset quoted at the selected time of expiry. The value is used to determine if the binary option expired in-the-money or out-of-the-money.
Expiry Time
The chose time and date at which a binary option lifetime will expire.
In-the-money
A ‘call’ binary option will be in-the-money if its price records a higher value at its expiry time than that of its opening or strike one. A ‘put’ binary Option will be in-the-money if its price records a lower value at its expiry time than that of its opening or strike one.
Investment Amount
This is the value of the deposit an investor makes to fund a binary option.
Out-of-the-money
A ‘call’ binary option will be out of-the-money if its price records a lower value at its expiry time than that of its opening or strike one. A ‘put’ binary option will be in-the-money when its price records a higher value at its expiry time than that of its opening or strike one.
Payout
This is the profit that investors will receive if binary options expire ‘in-the-money’. OptionRally’s Payouts are as high as 78% of the initial deposit.
Put Option
This binary option will generate a pre-determined profit for you if the price of its underlying asset is lower at its expiry time than its opening or strike price.
SPREAD
This is the difference between the Ask and Bid prices of the underlying asset upon which a binary option is based.
STRIKE PRICE
This is the opening price of the binary option’s underlying asset when it is activated or exercised.
VOLATILITY
This is a measure of price fluctuation of a binary option’s underlying asset.
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