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BINARY OPTIONS GLOSSARY
Asset

Often called an underlying asset this refers to the type of item that you are trading on. Examples of assets include: GBP/USD, EUR/USD, Gold, FTSE-100, Dow Jones and many more.

Asset Class

The category of financial derivatives to which an asset belongs. Asset classes in the binary options market are stocks, stock indexes, commodities and currencies.

Bearish Market

The terms bearish is used to describe a financial market or stock who's price is generally on a decline.

Binary options

Binary options are contracts which have only two possible outcomes - either they win, or they lose – and are therefore binary by nature. A binary option involves a fixed payout after the underlying stock meets or exceeds its predetermined threshold or strike price.

Boundary / Range Instrument

The term boundary or range instrument allows a trader to decide whether the price of the underlying asset when the option expires will be inside or outside a specified range. The range is specified by higher and lower target price limits.

Call

Choose binary call options if you predict that the value of the item you are trading at will increase in price by the time of your chosen expiration. If the strike price increases in that time, you earn money based on the percentage set prior to bidding.

Current Price / Market Price

This is the current price of the underlying asset which is reported in “real time” without delay typically by a data provider. Some brokers/trading sites report results that can be delayed and they often mention this in their terms and conditions.

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