EUR/USD
Google
GBP/USD
Amazon

Glossary

  • A
  • B
  • C
  • D
  • E
  • F
  • G
  • H
  • I
  • J
  • K
  • L
  • M
  • N
  • O
  • P
  • Q
  • R
  • S
  • T
  • U
  • V
  • W
  • X
  • Y
  • Z
C
Call Option

In binary options trading, a Call option is when a trader predicts that the price of the financial asset will rise by the expiry of the trade.

Currencies

(e.g. EUR/USD)

E
Earnings Season

A period of six to eight weeks when 5,000 publicly-traded companies in the U.S. stock market release their earnings report for the quarter or for the year. This season is considered to be one of the most important for stock traders, as well as a very active time in the markets as traders, analysts and investors review these earnings reports.

Economic Indicators

Pieces of macroeconomic data used by investors and analysts worldwide to assess current or future investment possibilities, as well as to judge the overall health of an economy. These indicators reveal whether the country’s economy is growing or contracting.

Expiry Time

The time and date at which an option expires.

Expiry Level

This is the level of the asset at the time of the asset’s expiry which is based on data received from 24option.com’s data provider.

F
Financial Asset

A financial instrument traders can purchase in binary options trading. That is, it is a resource which has an economic value and an asset can either be a stock such as Google or Facebook; a commodity such as oil or gold; a currency pair such as the EUR/USD or the USD/JPY; or an index such as the NASDAQ or the S&P 500 index.

Forex

The term "Forex" is the abbreviation for Foreign Exchange and it represents the forex market, which is the biggest financial market in the world with over $4 trillion of intraday transactions taking place daily, from Monday through to Friday.

Fundamental Analysis

This form of analysis assesses the economic condition of a specific financial asset or a country in order to predict its future trend. That is, fundamental analysis attempts to measure the intrinsic value of the asset by taking into account any related financial, economic and other qualitative and quantitative factors. The focus here is on anything that could impact the asset’s value

H
High/Low Instrument

A binary option in which a trader can decide if the asset’s market price will expire higher or lower than the current market price.

High Option

A binary option type in which the trader believes the market price of an asset will expire above the current market price.

I
In the Money

This term means that the market price of the asset is currently trading at the target price or has closed and is profitable.

Investment Amount

The amount of capital invested in an individual binary option.

Inbound Option

One possibility of the boundary option. The trader decides if the market price will expire inside the predetermined price range.

L
Low Option

A binary option in which the trader believes the market price of an asset will expire below the current market price.

M
Max Profit Instrument

A trading tool that allows for a return of up to 400%. Your prediction must surpass the spread. The higher the return you choose the larger the spread.

Market Price

The current price of the asset based on the data provided by 24Option.com’s data provider.

N
No Touch Option

A binary option trade in which the trader decides if the market price will not reach a predetermined price through the life of the option.

O
Outbound Option

One possibility of the boundary option, the trader decides if the market price will expire outside the predetermined price range.

Out of the Money

This term means that the market price of the asset is not currently trading at the target or has closed and is not profitable.

One Touch Instrument

A binary option trade in which the trader decides if the market price will reach a predetermined price through the life of the option.

P
Put Option

In binary options trading, a Put option is when a trader predicts that the price of the financial asset will decline or decrease by the expiry of the trade.

R
Refund

This is the amount of money refunded to the trader if he/she has invested in an option that accounts for a refund if the option expires “Out of the Money”.

S
Support and Resistance

Levels that are widely used by traders to formulate trading strategies. The level of support is defined as the price level, which, historically, an asset has had difficulty falling below. The resistance level is defined as the price level which, historically, an asset has had difficulty breaking through.

T
Technical Analysis

Analysis or evaluation of financial assets by assessing statistics and mathematics which are generated by market activity. This information is then used to analyze or predict the future price or trend of a financial asset by using the price chart.

Trend

Refers to the direction of the market price. A trend can either be an uptrend, a downtrend or a horizontal trend. In an uptrend, the price of an asset is moving upwards or increasing whereas in a downtrend, the price of the asset is moving downwards or decreasing. In a horizontal trend, the price of the asset is moving sideways or ranging.

Target Price

Target price, also known as the market price, is the current price of the asset based on the feed by the data provider.

U
Underlying Asset Types

Stocks (e.g. Google, British Airways) Commodities (e.g. Gold, Brent Crude) Indices (e.g. NASDAQ, FTSE 100)

Underlying Asset

The asset in which the trader is invested in the binary option.

1
100% Payout Instrument

A trading tool that allows for a return of 100%, and requires that your prediction not only move in the right direction but surpass the spread.

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