Main Page Sitemap

Binary options terminology

binary options terminology

inside or outside a pre-determined range at expiry. But the thing is you can use this with any company such as: Microsoft, Google, Amazon (their Kindle products Samsung, Sony, HP, etc. For this reason below I will list some of the brokers that do and are known to be legit. A trader who bets that prices will rise is also called a bull, while a trader who bets that prices will fall is known as a bear. Call or a, put, depending on whether the investor thinks the asset will finish above or below the strike price. If the market price at any point touches the target price, it immediately expires out of the money and you lose your initial investment. With that goal, indicators with various scripts are used, as well as methods of graphic analysis and visual evaluation of price behavior on the chart. Based on this information how do you think the stock prices of Apple will move right after the iPhone launch? There are also other types of trades, such as pairs, FX/CFD, No Touch, and others. At the end of every binary options trade you will either have been successful, which is known as being in the money; or you will have been unsuccessful and will be out of the money. Some brokers even will even refund you a portion typically 15 - of your initial investment, even if the binary expires out of the money.

They are previously compiled systems, made up of concise indicators and forecasting and trading market methodology. One-Touch These options are path-dependent options in which the existence and payment of the options depend on the movement of the underlying price through their option life. In terms of importance, money management comes before any concrete trading strategy. Conclusion In this article, we have gone through the list of the most important terms, widely used in trading with binary options. Without these you will be unable to effectively start trading or build a successful investment career. With binary options trading, you are usually trying to predict whether the price of an underlying asset will go up or down to hit a pre-determined level. Strategies based on candle analysis cycles fall into this very category.

The current price and the strike price. Trading on how well a particular currency is doing alongside another, traders can make informed predictions on currency pairs and with the added comfort of short expiration times that is common when trading in binary options. To do this, you need to form a view on whether the overall market for that asset is bullish (the price is generally rising or in an uptrend) or bearish (the price is falling or in a downtrend). Other assets that binary options can be written against include currencies (foreign exchange pairs such as USD/GBP or USD/EUR commodities (physical, natural resources like gold, oil, wheat or cotton an index (an imaginary portfolio of securities that reflects price changes in a market or part. With a high/up/call option, you expect the price to rise. Here lies the essence of this type of binary contract, which is where they got their name.