Glossary

A

Assets: Stocks, commodities, Assets: Stocks, commodities, indices or Forex currency pairs. or Forex currency pairs. At-the-money: When the call and the put options will be identical at the expiry time. Investors receive full refunds of their initial deposits.  

B

Bear:represents a trader who expects the market’s price to fall.

Bid: The price at which an asset can be sold.

Binary options:  Or digital options as derived from their name, are options that pay out a fixed return depending on whether a certain condition has been fulfilled by the time the option expires.

Bull: RRepresents a trader who expects the market’s price to rise0.

C

Call option: An option in which the trader expects the price of a specific underlying asset to finish higher than the price he started its trade with, of course during a pre-determined time. Correlation: A relation between one or two underlying assets such as the positive correlation between the prices of oil and CAD . Commodities: goods and services such as energy, food and metals. Currencies: paper money used as an exchange between sellers and buyers around the world.  

E

Expiry Price: The real-time price of the an underlying asset in the binary option world at time of expiry . The value is used to determine if the binary option finished in-the-money or out-of-the-money.

Expiry Time: The time and date at which a binary option trade is over.

F

Forex: one of the greatest financial markets in the world used to exchange and trade currencies.

Forex Option: These binary options offer underlying assets based on currency pairs such as : GBP/USD, USD/JPY etc.

H

Hedging: A strategy to minimize risk on trades . Typically this involves taking opposite positions in two different markets.

I

Indices: collections of stocks which are divided by certain principles in order to measure the market, sector etc.

Interest rates:  The cost of borrowing money, “how much money will it cost me to borrow 1000$ from the bank? 

In-the-money: Term used for both call and put options and determines you trade was successful or not, for call options if the price is higher as you predict you win the trade for put option is the other way around.

L

Loan: An amount of money a borrower collects from a lender.

Long: Purchasing an asset with the expectation it will increase its price.

N

NASDAQ: National Association of Securities Automated Quotations is an american/canadian stock exchange mainly focusing on High Tech companies around the world.

O

One-Touch Option: One of many types of trading options you have in the platform which allows you to make a prediction whether the asset will touch a predetermined point during the trading time.

Out-the-money: When the price set was lower than your prediction .

P

Payout: The revenue investor  receive if its prediction was right ( In-the-money).

Pip: The fourth figure after the decimal point in a number. A pip is the smallest tradable unit of currency pairs.

Put option: An option in which the trader expects the price of a specific underlying asset to finish lower than the price he started its trade with, of course during a pre-determined time.

S

Share Price: The price of specific stock.

Shares: stock is a type of security that represents a partial ownership in a corporation. The owner of a stock can enjoy only from increase or decrease of its stocks value with the ability to sell / buy whenever he wishes.

Short: when an investor sells an asset and wish for the price to fall down.

Spread: The commission with pay for the broker usually set as the price difference between the Bid and Ask.

Stock Exchange: The location where shares are sold and bought.

T

Trading hours: Individual assets have specific trading hours, days and holidays.

V

Volatility: This is a measure of price change of an underlying asset. High volatility means the price of a certain asset changes sharply.