To successfully master the basics of binary trading, one should be well-versed in the terminology used by professional traders. Apart from the dictionary shown below, we recommend our customers to take our training course, where they can get a lot of valuable information for beginners. After passing this course, customers will acquainted with the basic terms and concepts related to the field of binary trading.
When using the dictionary, one should understand that most terms in Russian language have multiple synonyms, the use of which is also allowed. They can be found in various information materials. Moreover, the dictionary contains English versions of the terms.
Asset (underlying asset, trading instrument) may be represented as currency pairs, shares, commodities, indices, securities, raw materials, etc., i.e., all financial instruments that are used by the trader to forecast the change in quotations.
Expiration date (Expiration, expiry, expiration) is the time point, after which the outcome of a particular transaction is determined. It means that at a certain time, specified by the trader at the conclusion of the transaction, there will be a comparison of the current quotation of assets with their target rate, and, depending on the result, the trader will receive either profit or loss.
Payment (Payout) is the amount of profit received by the trader after the completion of the trading operation. Above (Above, Call, Up, growth, etc.) is an upward movement in the value of assets, during which the trader will make a profit (if when closing the transaction, the predicted quotation for a particular asset will be more than when opening a transaction).
Expiry rate is the asset rate at the end of the transaction. To determine the result of the trading operation, it is later compared with the target rate. Below (Below, Down, Put, fall, etc.) — the downward movement of quotations, which will bring profit to the trader, if the predicted value of the asset falls below the target rate.
Option “Above/Below” (Binary option, Digital Option, option up/down, digital option) is one of the simplest types of stock trading, in which the trader must forecast the growth/fall of quotations. To make a profit, one needs to make the forecast that would correspond to the real movement of the assets value.
Profitable area (In-the-Money) is the zone of movement of asset value, desirable to the trader: down — when forecasting the fall of prices, up — when forecasting the growth of quotations.
Transaction amount (Invest Amount, rate, transaction value, investment amount) is the amount of funds that the trader is willing to risk at the conclusion of the transaction. The amount of profit that the trader will receive in the case of the right prediction directly depends on the amount of the transaction.
Current rate (Market Rate, Our rate) is the rate of assets at a given time period. At the beginning, the current rate becomes the target rate, and the current rate becomes the expiry rate only at the end of the transaction. The comparison of the target rate and the expiry rate with the trader's forecast determines the outcome (profitability or loss) of the trade.
Loss zone (Out-of-the-Money) is the zone of quotes movement in the direction opposite to the forecast.
Target rate (Strike Price, strike, target level) is the assets value at the time of the trade execution. It is this rate that is compared to the expiry rate to determine the correctness of the trader's forecast.