Binary Options Glossary
Even if you know little about international market and have only limited funds to invest, you can take part in the global finance and make profit from the movement of the market. This is possible with an instrument called binary options trading. You can invest in an asset and predict the direction in which its price will move within the time of expiry. If your prediction turns out to be correct, expected profits can exceed 70% or more.
However, before you start investing your hard won funds in binary options trading, you should become thoroughly familiar with the subject. A Binary Options Glossary can be of great help to you in this regard.
Some basic terms of Binary Options Glossary
Here are some important terms of the binary options glossary that you will need to know if you start binary options trading:
- The first term is binary options. This refers to a choice between two options – hence the name. When you invest in an asset, you will have to choose call option if you think that the price will increase or put option if you think that the price will decrease.
- The next two terms with which you need to be familiar are in the money and out of money. If your prediction is correct and you make a profit, your trade is in the money. If your prediction is wrong and you incur a loss, your trade is out of money. If the price predicted by you is the same at which the market expires, your trade is at the money.
- The things in which you invest are called assets in Binary Options Glossary. Often they include different items like stocks, indices, commodities and currency pairs. Assets are generally drawn from different markets of the world to give you a wide canvas of trading.
- Expiry time refers to the point of time at which the trade expires and the fate of your investment is determined. It may range from the end of the minute to the end of the month.
- There are various trading platforms of binary options. These are high/low option, inbound or outbound options, one touch options etc.
- Finally, the Binary Options Glossary also refers to several trading strategies. For example, single asset strategy concentrates its attention on one asset while sitting on the fence strategy teaches you how to distribute your risks so as to minimize them.
Go through the Binary Options Glossary carefully in order to trade profitably
While you do not require any expert knowledge in order to trade in binary options, education and knowledge is only going to help you become better at what you do. So, search the internet for detailed Binary Options Glossary where you will be able to familiarize yourself with these and many more terms of binary options. This will increase the depth of your knowledge about StockPair binary options trading and the chances of making a good profit will increase proportionately.