- May 25, In the world of binary options trading there is a substantial amount of various terminology present, meanings behind such, and differential dynamics in which said terminology can or should be applied.
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This binary options dictionary will be constantly expanding and new definitions will be added to it. Binary Options Dictionary Asset: Otherwise known as the underlying asset; an ownership agreement on a digital option which gives binary option investors the right to buy or sell based on a predetermined agreement.
Indicates to investors that the bears are in control of the markets. Oftentimes these bonuses come with account restrictions where the binary options dictionary cannot execute a withdrawal until a predetermined volume of traders have been met.
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A simple a yes or no proposition option where investors predict whether they believe the price of a particular asset will be higher or lower by a predetermined time period for a fixed amount. Many binary option signal services lack the ability to deliver consistent or profitable trading signals, for a list of comprehensive list of reliable and profitable signals please feel free to visit our Recommended Signal Services.
Indicates to investors that the bulls are in control of the markets. Charting solution: A software or website in which binary option traders have the ability to watch and analyze the live feed of a particular trading asset while adding indicators and changing plotting methods.
Oftentimes used by binary option investors who made an inaccurate prediction on the market to limit their losses. Correlating assets can have a strong or negative correlation to one another, depending on their correlation investors can oftentimes accurately predict the future direction of another asset without having to analyze it.
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Once you double up a specific trade, the same trade will be automatically placed with a new entry price. Fundamental analysis: A binary options dictionary of trading analysis that requires the studying of economic factors that may indirectly affect the price value of particular assets. Instrument: Investing term broadly used to represent an asset or a technical trading indicator.
Support Binary Options Glossary If you want to become a real pro, then you must learn the basic terminologies used in the trading world. Our binary options glossary is the easiest way to learn about the basic terms and phrases used in binary options trading and sharpen your know-hows about the global financial markets. We created this concise glossary to address common queries about the jargons used throughout the site. Here you will find the most common terms used in our website and the binary options industry in general. Should you have concerns not addressed in our binary options glossary, get in binary options dictionary with our customer support team for further information.
Market sentiment: Refers to a composite overview reflected by a wide number of investors in regards to their predictions for the future performance of an underlying asset, a class of similar assets or overall future in regards to the financial market. NFP is reported on the first Friday of every month and it can be used to predict economical changes.
Indicates to investors that neither the bulls or bears are in control of the markets. Order flow: The direct derivative of Price Action; the summation of all buy and sell orders executed during any duration of time.
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Payout: The predetermined cash value given back to an investor once a binary options contract has expired. Range options are exceptionally common among binary option investors who use hedging or fencing trading approaches.
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- Binary options depend on the outcome of a "yes or no" proposition, hence the name "binary.
Rollover: A feature that allows you to extend your expiry time for a particular trade and requires that you add a certain percentage to your investment. SpotOption: a technological company which provides one of the most popular binary options trading platforms.
SR: Strike Rate. In the context of binary options trading signals, this is the value of an asset at the time of entering the trade. SSL: A form of cyber security binary options dictionary by most binary options brokers also known as encrypted security. Helps keep your personal and financial information safe.
Support level: Most commonly applied in Price Action Trading Strategy; an imaginary level created when the price of a particular asset bounces off the exact price level during the order flow of an asset. If the option fails to touch one of the two price levels your investment expires OTM.
Note that the binary trading lingo found on this page covers all of the major binary options platforms. Asset — The instrument that underlies the trade.
Trader choice: A fundamental trading tool that is designed to accurately reflect the market sentiment in regards to particular underlying assets. Volatility: The ability of a particular asset to be inadvertently affected by minor fluctuations that may occur in the financial markets.