Financials glossary

Get your head around the jargon for binary options and trade with confidence.

There is a great deal of complex ‘insider’ terminology in financial trading – familiarising yourself with the language of financials will help you play the markets like a professional.

Terms & jargon

The following list of terms will help you understand financial betting:

Asset: the instrument used to strike a contract; e.g. stock, currency pair, or index.
At the money: a neutral outcome of a trade where the value of the option at expiry is equal to the strike price. In this case, your investment will be refunded.
Boundary or range instrument/platform: a facility allows the customer to decide whether the value of the asset will be inside or outside a specified range at time of expiry.
Call: trading on an asset with the presumption that the value of the asset will be higher than the strike price at expiry.
Commodities: raw materials such as energy, food, or metals.
Current price: the price of something reported in ‘real time’.
Digital (binary) option: an option that offers a fixed return or none at all.
Early closure: closing an open position so that the option will immediately expire.
Exotic options: an option that traded on exclusive markets for years that has now become available to the public as binary options.
Expiry level: the value of an underlying asset at the time of expiry.
High: an option in which the investor presumes that the underlying asset will expire at a price greater than its target.
High/low instrument/platform: an option or trade that gives the investor a fixed pay-out if an asset expires at a price that is higher or lower than it was at the start, provided that the selected expired ‘in the money'.
Index/indices: an index that represents a basket of stocks.
Investment amount: the amount invested in an option, also referred to as ‘the stake’ or ‘strike’.
In the money: an asset that, during a specific option/trade period, trades in the position presupposed by an investor.
Low: an option in which the investor presumes that the underlying asset will expire at a price lower than the strike price.
Market price: a price that represents the current value of an underlying asset based on the opinion of collective markets.
No touch: an option that does not reach or surpass its target.
Out of the money: an asset that trades in a position that has not been chosen by the investor.
Put: trading an asset with the presumption that its value at expiry will be lower than it was at purchase.
Return: the amount paid to the investor if an option expires ‘in the money’.
Stock: shares of a specific company.
Time of expiration (expiry/maturity): the time and date when an option/trade expires.
Touch instrument: an option that gives a predetermined fixed pay-out if the trader selects one of two possible outcomes:

Touch: an option touches or surpasses a predetermined level once during a specific option/trade cycle.

No touch: the asset does not reach or surpass a predetermined level during a specific option/trade cycle.
Touch: an option/trade whereby the asset reaches or surpasses a set level.
Underlying asset types: traded commodities. For example:

Stocks: (e.g., Google, British Airways)

Commodities: (e.g., Gold, Brent Crude)

Indices: (e.g., NASDAQ, FTSE 100)

Currencies: (e.g., USD, EUR)

The right financial clients

You know the lingo – now it’s time to rake some chips. Get started at some of our best financials clients.

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