BINARY OPTIONS GLOSSARY
The Australian Securities and Investments Commission.
The price thatTrade is willing to accept for a specific asset or security. It also can be thought of as the price at which an investor can purchase an asset or security.
A resource that holds economic value and can be sold for cash such as commodities, stocks, currency pairs and indices.
At the Money
When strike (the rate/price a trader contracts at) equals expiry we call that ‘at the money’. This is the considered the same as an out of the money option and the trader would not receive back their original investment.
Australian Dollars, or $A. The lawful currency of the Commonwealth of Australia.
A term to describe a financial market or stock price generally on the decline.
The price thatTrade would be willing to purchase an asset, it is also the price the investor may sell their asset or security.
Exotic options/derivatives, they are also known as digital options, where the outcome is structured and fixed. You either win or you lose the trade. Value of binary options payouts are determined at the start of the contract and are not affected by the movement of the underlying asset value.
Someone or a company acting as an agent to make a contract between a trader and the principal.
A term to describe a financial market or stock price generally on the incline.
An option to buy assets at an agreed price on or before a particular date/time. Investors profit from this option if the asset has increased in price.
WithTrade this refers to a trading bonus or reward that can be redeemed through trading on a one-to-one basis. Eg. If you trade $100 and have $100 in pending cashback, it will be redeemed into real funds.
One of the underlying asset types, for example oil and gold.
A favourite asset type of many traders. Currencies are traded in pairs and the relative value is derived from the markets, some of the major currency pairs include EUR/USD, USD/JPY, AUD/USD , GBP/USD, USD/CHF.
A financial product that derives it price from an underlying instrument eg Stocks or Forex.
In order to start trading you need to add funds to your trading account. For AU$ accounts, please note that the minimum deposit amount is AU$10 for bank transfers and AU$50 for credit card / Neteller. For US$ accounts, the minimum deposit amount is US$50 for all deposit methods.
Early Closure/Selling option
To exit a position early and cease a contract.
The lawful currency of the countries within the European Union.
A regulated online platform for buyers & sellers to match orders eg New York Stock Exchange.
How long an option will run for. It could be 30 seconds or it could be 24 hours.
A financial market within the meaning of the Corporations Act (which includes, for example, any market on which prices of Financial Products are quoted), whether located in Australia or elsewhere.
Foreign Exchange Trading
The simultaneous buying/selling of one currency against another. Also known as FOREX
To evaluate an asset by using current and historical economic and political data. Everything from financial policy, monetary policy, interest rates to global economic conditions needs consideration.
The lawful currency of Great Britain.
The amount which you are required to pay toTrade (depending on your Financial Product or financial service), as the initial Margin Cover for any Transaction which you propose to enter into.
In The Money
The option has realised a gain and has made a profit for the client at that particular point in time.
The money invested when you purchase an option. A single investment atTrade range from $10 to $1000 per trade.
The lawful currency of Japan.
A damage, loss, cost, expense or liability incurred by the person concerned, however it arises and whether it is present or future, fixed or unascertained, actual or contingent.
The current price of a particular asset.
A Transaction which has not been Closed Out, or settled prior to the time agreed for settlement.
Out of the Money
The option has expired and the trader has made a loss on their investment.
The end of a trading day at 17:00 US Eastern Standard Time.
The amount you can expect to receive after an option contract comes to an end.
The smallest increment by which a unit of currency, index level or a commodity contract changes and is quoted depending on the number of decimal places in which the currency or index is quoted. For example, in the case of a Foreign Exchange Transaction, a USD/JPY Foreign Exchange Transaction is quoted with only two decimal places.
In relation to a Transaction, the price or rate quoted byTrade as finally determined when an Order is implemented.
An option to sell assets at an agreed price on or before a particular date/time. Investors purchase Put options with the view of the asset declining in value to maximise returns.
The total profit after a trade is closed out.
The amount you stand to make subtracting the amount you have initially invested. If your payout was $190 and your initial investment was $100 then your return is $90 for 90%.
Segregation or segregated account
Client money that is deposited is kept in a separate bank account toTrades company/operational account.
A stock refers to the stock of a specific company which are available to trade on the financial stock market.
Also known as purchase price is the price of the underlying asset at the time you have purchased the option. The strike is compared to the expiry to determine whether a trade was successful or not.
The study of the price of an asset, drawing up on historical data to work out patterns and trends. Tools such as oscillators are used to help traders to determine directions and trends.
The operating conditions for trading on the Online Service from time to time.
The actual instrument that the binary option is derived from.
Underlying Security Price
The market price of the actual instrument the binary options is derived from.
The fluctuation of your P&L while the trade is still opened.
United States dollar or the lawful currency of the United States of America.
After making successful investments you might want to take money out of your trading account. A withdrawal can be instantaneous, or potentially take some time depending on the withdrawal method chosen.