WELCOME TO BINARYPEDIA! – Binary options encyclopedia made by binary options traders for other binary options traders. Here you can see and learn all the terms that are involved in binary options.
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BINARY OPTIONS TERMS
ASSET: Instrument that is used to determine a value of specified option. We know the main ones are currencies, stocks, commodities and indices. By financial term, an asset is any product that can be owned and can produce additional value in terms of economy.
INSTRUMENT: Different term describing an asset.
AT THE MONEY: Term is described as “at the money” when strike price is same as market price of specified asset.
BINARY OPTIONS: Type of option that has predefined profit if investor/trader has correct prediction until the expiration time. Otherwise trader will lose whole amount – its all or nothing option type.
BOUNDARY OPTIONS: Type of option where investor/trader has to predict if price will be inside or outside the prededfined range based on the expiration of time.
CALL OPTION: Meaning that trader predicts the value of a certain asset will be higher at the end of expiry time.
PUT OPTION: Meaning that trader predicts the value of a certain asset will be lower at the end of expiry time.
CHART: Represent graphical interpretation of certain asset.
COMMODITY: A term that describes a good that satisfies certain needs and it is tradeable, for example such as corn, soybean, rice, etc.
CURRENCY PAIR: This are simply two currencies measured one agains the another.
DAY TRADE: This describes a trade that was opened and closed in the same day.
DIGITAL OPTIONS: Different nam or term describing binary options.
UPTREND: Price of certain value increased and you can see higher highs.
DOWNTREND: Price of certain value decreased, is declining and you can see lower lows.
EXPIRATION TIME: When the option is going to close and you will know what the outcome of the trade will be.
EXPIRATION PRICE: Price of an asset when the trade is over.
IN THE MONEY: Meaning when the trade is profitable but not yet expired.
OUT OF MONEY: Meaning when the trade is out of profitable zone but not yet expired, it can come back but at the moment it is out.
INDEX: Average value of companies that are in certain index.
PIP: Amount by which forex moves. This is the smalles amount.
ROLLOVER: Extend the time of your trade.
STRIKE PRICE: This is the price of a certain asset at which trader can buy or sell the option.
BEARISH: Term that is commonly used in finance and means when a certain asset will decline.
BULLISH: Term that is commonly used in finance and describers when a certain asset will increase.
BID: This is the price that trader is willing to buy.
BROKER: Company that handles the buying and selling of assets for investors.
CABLE: This is a currency pair term slang name for GBP/USD
COVER: Closing the position that was open.
ECONOMIC INDICATOR: This are statistics that shows us the growth or decline of a certain thing such as unemployment change.
EQUITY: This is the money you have currently available for trading meaning you do not count in the money that is currently in the open trades.
LIQUID MARKET: This is a market that has large volume of trading.
MARGIN: To open a position you need minium amount of money and this is shown as margin.
MARKET QUOTE: Price of an asset that is currently traded for.
OTC: Over The Counter trade means there is no third-party involved.
RESISTANCE: Level where an asset price was already but could not go further down so it is more likely to happen again in future.
SUPPORT: Level where an asset price was already but could not go further up so it is more likely to happen again in future.