Binary futures trading terminology usa
Likewise, a put option is in-the-money at the time of expiry when it is lower than the price the option was bought at. A quoted price that represents the current value of an asset using real time data to show current market rates. Should an investment reach the predicted price point at any time, it shall expire automatically.
Out of the money: This means that your call options expired lower than its buying price. Predictably, this does mean that your put option has expired higher than its buying price. The profit realized when a contract expires in the money. It is the measure of value that helps a trader calculate profits and losses. This refers to an option that is bought on the premise that the asset or security will decline in value beyond before its time of expiry.
This is one of the most sought after trading incentives a broker can offer its traders. Some brokers offer their traders between risk free trades. All the trader needs to do is trade as normal. If they lose, the broker will negate any losses or refund your loss. A Security is a tradable and intangible asset of any kind. This can include Stocks, Bonds, Mutual funds or more commonly for online traders, this includes the options offered by Binary Options Brokers.
This is usually the difference between the asking price and the bid of a particular asset. A system of analysis whereby historical data is examined to predict future trends in the prices of assets.
A popular tool in Forex trading, this refers to a trading instrument whereby a trader can predict two specific levels that an asset must move in-between in value to generate a payout. If the chosen asset value beyond these two specified points the option automatically expires. This refers to the ability to close an open position so that an option will immediately expire.
An option contract consisting of attributes not usually found in most traditional contracts, which are now available to the general public in a simplified form — as binary options. The time and date at which an option or trade expires. The result of a trade is determined at this point. A method of quantitative and qualitative analysis used by traders to determine which macroeconomic, and possibly company specific factors, should be taken into consideration when analyzing the possible behavior of a security or an asset.
A type contract that agrees to buy or sell a certain asset or security at a given point in the future. This is the most common style of Binary Options Trading. An index singular or indices plural is the term used to refer to a grouping of securities set up in a way that tracks the asset pricing of a particular section of the market, sector or currency.
A call option that has a higher value at the time of expiry than when the investment was made, is viewed as in-the-money.
Likewise, a put option is in-the-money at the time of expiry when it is lower than the price the option was bought at.
A quoted price that represents the current value of an asset using real time data to show current market rates. Should an investment reach the predicted price point at any time, it shall expire automatically. Out of the money: This means that your call options expired lower than its buying price. Predictably, this does mean that your put option has expired higher than its buying price. A physical or electronic document that has intrinsic monetary value or transfers value.
For example, cash, shares, futures, options and precious metals are financial instruments. This is the amount needed as available trading resources in your account in order to open a position. A put option that has a strike price higher than the underlying future price, or a call option with a strike price lower than the underlying futures price.
The value of an option if it were to expire immediately with the underlying stock at its current price. The last day on which you can open or close a trade in a particular market. The last trading day is not the same as the expiry date. A technique to multiply gains and losses. Most often used when buying more of an asset with borrowed funds. The deposit or available credit needed on your trading account in order to keep your positions open. A call from the credit department for further funds to be deposited in the account to support additional exposure from running losses.
A financial derivative instrument that gives the right to purchase call or sell put a fixed amount of stock at a specified price and within a certain time limit. Also called the option seller, an option seller grants the right to trade a security at a given price in the future.