Glossary

Asset: this is a forex pair, commodity, stock or an index.

At-the-money: When the option price at expiry time is the same as the buying price, the entire investment amount will be returned to the trader.

Call or Above Option: This is an option that will provide traders with a predetermined profit if the underlying asset will be higher at expiration, than the time when the purchase was made.

Current Price: According to the real time information, this would be the final price unless it’s stated otherwise.

Digital Options: This is another name that is used for binary options and is generally refering to binary options with odds that are fixed.

Expiry Time: The time as well as date when an option would expire and a trade will be confirmed to be out-of-the-money or in-the-money.

Fundamental Analysis: A trader would utilize fundamental analysis in order to figure out how macro-economic elements could impact the value of a trade.

In-the-money: This is used for Call option, whether it’s Above/Below, once the strike price is higher than the market price for an underlying asset. It is also used for a Put option that is above/below if the strike price is less than the price in the market for an underlying asset.

Out-of-the-money: Generally used for Call option that is Above/Below if the strike price is more than the underlying asset based on the market price. When it comes to a Put option, which could be Above/Below, the strike price for the underlying asset would be lower than the price of the market.

Put or below option: This option provides traders with a profit that is fixed once the price for the underlying asset will be less than the price that it was purchased for at the expiration time.

Range Option: This is one of the three kinds of binary options that you will have option in trading room. For range options trading, an investor needs to predict whether an asset price is going to be In or Out of an established range at the expiration time.

Strike Price: An underlying asset price should reach this to be either out-of-the-money or in-the-money.

Technical Analysis: This is done based on statistics and charts. Traders make use of technical analysis in order to predict the movements of future options according to their previous performance.

Touch Option: Among the three kinds of binary options that is available in the trading room. For touch options, a trader have to foretell if a particular asset price is going to reach a fixed strike before the expiration.