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Binary Options Glossary

In recent years binary options trading has become highly popular. The reason is that it is very easy and you can make very high profits without devoting hours of study. However, it is necessary for you to learn the rudiments of binary options trading before you invest your money. That is why it is necessary to find a detailed and accurate Binary Options Glossary to help you learn the ropes.

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Some common terms in Binary Options Glossary

Here are some common terms of Binary Options Glossary which you should know in detail:

  • The first term in a Binary Options Glossary is of course binary options. This refers to a trade where you have only two options. You invest your money in a chosen asset and you choose one of two options. You predict whether the price will go up or down. A correct prediction can make you a huge profit.
  • The next two terms in the Binary Options Glossary which are closely associated with the above concept are the call and the put options. When you predict that the price will go up at the time of expiry, it is called a call option. When you predict that the price will go down at the time of expiry, it is put option.
  • Assets refer to the stocks, indices, currencies and commodities in which you invest to carry on binary options trading.
  • Another term in the Binary Options Glossary is in the money. If your prediction turns out to be correct when the market expires, you make a profit and your trade is said to be in the money. On the other hand, if you predict wrongly, you incur a loss and the trade is out of money. The great advantage of binary options trading is that you know beforehand the maximum amount that you can lose if your trade turns out to be out of money.
  • EzTrader Binary Options Glossary also includes the term expiry or the time of expiration. This refers to the time limit which is set on the trade. Your prediction has to come true within this time for you to be in the money.
  • Binary options strategies are another group of terms included in a Binary Options Glossary. There are various strategies for making long term profits by trading binary options. Focusing on one option, pairing strategies and hedging strategies are the most common.

Educate yourself as you earn

A Binary Options Glossary will help you to learn the different terms related to binary options trading and can prove to be of immense help to you when you are just starting to trade. As you grow more familiar with the process, you can learn more terms which will help you to understand and create your trades in more innovative combination in order to derive a higher proportion of profits.

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