Binary Options Dictionary

Posted on 20 Dec 2015
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Want to learn about Binary Options ?

Read more from the most updated dictionary in the industry, to make sure you understand all the terms that you encounter on your way.

 

Binary Options Dictionary

 

Asset:  Also known as the underlying asset, assets are an ownership agreement on one or more digital options which allow binary option traders the ability to buy or sell based on a predetermined settlement between the investor and broker. 

 

Bearish Market:  A market that is heading in a down direction; indicates to binary option investors that the sellers (bears) and in control of the markets. 

 

Binary Options:  An investment opportunity between an investor and a broker based on a high or low proposition where investors predict whether the price of an asset will be higher or lower by a fixed time period for a fixed amount of compensation. 

 

Binary Option Signals:  Signals generated with the sole intention of helping the investor generate a more profitable and successful binary options trading portfolio.  Can be sent from an individual, social group, company or organization.  Oftentimes sent through a web-based live feed, email, or some other form of instant communication.  

 

Boundary Options:  A highly rewarding form of binary options investor that requires the investor to accurately predict whether they believe the value of an underlying asset will expiry outside or inside two predetermined boundary levels.  Payouts can range on average from 200 to 700% with this form of investing. 

 

Bullish Market:  Market condition characterized by an upward trend indicator to day traders that the buyers (bulls) are in currently control of the market. 

 

Call Investment:  An investment where the investor predicts that the value of the underlying asset will expiry at a higher value than the entry rate executed. 

 

Charting Solution:  Web-based or downloadable interface that give investors the ability to analyze and apply technical trading indicators to the live feed of investable assets.  Plotting methods can be changed along with variations and specifications of widely utilized market instruments and tools.  Common charting solutions would be MetaTrader 4, thinkorswim and freestockcharts.com

 

Commodities:  Investable assets that fall under the category of raw materials much like Wheat, Soybeans, Bronze, Silver, Gold and Crude Oil. 

 

Correlation Analysis:  A unique style of trading analysis that requires investors to analyze the correlation between two different correlation assets and make a prediction based on there positive or negative correlation. 

 

Digital Options:  Online investing options; also known as binary options. 

 

Double Up:  An option offered by many binary option brokers that allow investors the ability to place another asset for the same expiry time for the same value. 

 

Expiry/Expiration:  When a binary options contract expires or when it will end. 

 

Fundamental Analysis:  A traditional style of trading analysis conducted by binary option investors who rely on the study of economic factors along with the analyzation of an assets financial health in order to make accurate predictions on a particular targeted asset. 

 

Futures:  A contract opposed to an investable asset that serves as an index of value that allow binary option investors the opportunity to predict whether they believe the value will increase or decrease by a predetermined time period. 

 

In-The-Money:  An accurate prediction that results as a winning investment. 

 

No Touch Options:  A style of binary options investing that requires investors to predict whether the price of the underlying asset will pass or fall short of a predetermined price level. 

 

One Touch Options:  A style of online binary options trading that requires day trader to predict whether or not they believe the price of the underlying asset will exceed the given boundary level. 

 

Order Flow:  The summation of all buy and sell orders during any moment of time; also known as the child of Price Action. 

 

Out-of-the-Money:  An investment that is incorrect that results in a losing trade. 

 

Pair Options:  A style of binary options investing that allows investors the ability to predict whether they believe the value of the underlying assets will increase or decrease by a predetermined time period for a fixed payout. 

 

Price Action Trading Strategy:  One of the most complex yet highly effective binary option trading strategies that require investors to conduct technical analysis by solely analyzing an assets order flow in correlation to resistance and support levels. 

 

Put Investment:  An investment prediction executed by binary option investors where they predict the value of the underlying asset will decrease by a predetermined time period. 

 

Range Options:  A style of binary options investing where investors must accurately predict whether the underlying asset of an asset will fall within two different value price levels that were predefined by the broker. 

 

Resistance Level:  An imaginary level created when resistance has be formed due to market highs previously created previously throughout the day.  Oftentimes results in a breakthrough and continuation of an upward trend. 

 

Rollover Feature:  A unique trading feature offered binary option brokers that give investors the ability to prolong the expiration of an asset and to extend an expiry time.  A great risk reduction method offered by binary option brokers for online investors. 

 

Strike Rate:  Also known as the entry rate, it is the rate entered by binary option investors for their investment. 

 

Support Level:  An imaginary level created when a support level has been formed due to marker lows created previously throughout the day.  Oftentimes results in a breakthrough and continuation of a downward trend. 

 

Stocks:  An investable asset that represents a share in a company.  Allows binary option investors the unique ability to predict whether they believe the value of a stock will increase or decrease by a predetermined time period. 

 

Technical Analysis:  A style of trading analysis that requires investors to rely on the utilization of a charting solution oftentimes followed by the application of technical analysis based indicators. 

 

Technical Indicators:  A financial tool utilized by binary option investors that allow traders the ability to make more accurate predictions regarding the future direction of an underlying asset. 

 

Touch Options:  A style of binary options investing that requires binary option traders to predict whether or not the value of an asset will “touch” or cross two predefined levels offered by the broker. 

 

Volatility:  The possibility of an underlying asset to be indirectly affected by severe or minor fluctuations that can occur in the markets. 

 

Volume:  The total number of binary option contracts traded within a given market session. 

 

Withdrawal:  A request executed by an investor that allows them to withdrawal partial or their entire account balance and have it transferred to a banking method of their choice.  

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