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BASIC GUIDE: KEY TERMS AND PHRASE USED IN BINARY OPTION TRADING
Basic binary option in financial market instruments Derivatives are several types of derivative contracts, namely: Spot ‘,’ futures’, ‘forwards’,’ swaps’ and ‘option’.
It’s mean a transaction involving a ‘contract’ or ‘agreement’ between the two parties (here, is you and brokers).
Binary Option is a financial market investment products was first introduced in 2008 when it was listed on the Chicago Board of Options Exchange (CBOE).
Before listing, the binary options are actively traded only among the ‘institutional investors’ such as financial firms and investment banks.
The ability to accurately manage risk vs reward is one of the factors most traders continue to flock to venture into BINARY OPTION investment. The word binary means “the two sides”.
Investment contracts with profit option and risk of loss fixed in accordance with the financial capability at the lowest capital as low as 1USD.
BASIC BINARY OPTION & CONDITIONS
Binary Option is a business or investment over the assets traded like;
Index: Like Nasdaq, Dow Jones, FTSE, Nikkei and etc.
Forex: all major currency pairs such as the USD, EUR, GBP, JPY and AUD.
Commodities: Gold, Silver, Oil, corn, coffee and a few more.
Stock @ Share More than 45 companies are the largest and most attractive in the world from a variety of industries can be found in circles – Google, Deutsche Bank, Coca Cola and many more.
TYPE OF TRADING ORDER IN BINARY OPTION
CALL vs PUT
Refers to either select an uptrend (CALL) or downtrend (PUT) of the current market price.
TOUCH OR NO TOUCH
With regards to whether the asset price will touch or not to touch certain points. This option can gain up to 500% (depending on the broker). However the preferred investment is very difficult to identify the movements in price.
DOUBLE TOUCH / DOUBLE NO TOUCH
Like the others but had to contend with two points.
One option when a broker offers a trader with two prices. Traders may decide whether:Price will be terminated in the offer price or …The price breaks the boundaries of the agreed price. Not all brokers offer Boundary Option.
IN THE MONEY
It means that your trade is in profit.
OUT OF MONEY
It means that you trade in losses.
Option platform is where traders can trade from anywhere 24hrs x 7days. Webtrader It does not need to be download and active online and the Android version should be installed on phone. The platform is very easy to understand.
You can select the asset you want to trade by pressing the top left button on it.
Stocks, commodities, Forex and etc shown as at the current price.
RETURN @ PAYOUT
Return or benefits offered by brokers to traders (on total investments). Cash payments are still between 75-95% (if the transaction is successful) and 0% in the event of loss (the trader will lose the initial amout investment on individual trade).
EXPIRY @ Time and Date
Also called trade maturity, it shows the time the trade will be expired. You can also choose the expiry of categories by pressing the button ‘Options Expire At “in the upper right. Only the period of time from when you’ buy ‘option contract until it closed.
It can be as short as 60 seconds, 5minutes or reach for a month. Most of professional traders choosing short-term trading BINARY OPTION from 60 seconds to 30 minutes. 10 minutes is appropriate.
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