Basic Terminology Of Binary Options
This topic contains 2 replies, has 1 voice, and was last updated by michaelfreeman 1 year, 6 months ago.
Sep 1, 2017 at 4:10 pm #939
This article is for those, who just want to start binary options trading but not understanding the terms. So, what are the basic terminology of Binary Options?
1. Current price: the price of the underlying asset.
2. Strike price: the price of the underlying asset when the binary option is purchased.
3. Expiry price: the price of the underlying asset at the time of expiry of the binary option.
4. In-the money: a successful option trade i.e. a CALL option that expired above the strike price or a PUT option that expired below the strike price.
5. At-the-money: an option trade in which the price during expiration is identical to the level at which the option was bought??????in such a scenario the initial investment amount is fully returned to the customer.
6. Out-of-the-money: a failed option trade i.e. a CALL option that expired below the strike price or a PUT option that expired above the strike price.
Source: binaryoption00Sep 1, 2017 at 4:11 pm #940
The basic explanation is that like the meaning of the word Binary, with Binary Options, there are only two possible outcomes. You were either correct in your prediction and you therefore make profit, or you were incorrect, in which case you lose your money.00Sep 1, 2017 at 4:11 pm #941
I started trading about two years ago after moving on from Forex, I’ve done it all when it comes to online trading, and I’ve made a few videos over the last months detailing my experience along with some live trades, strategies that I came up with and some do’s and don’t along with some warnings for the newbies!!
Check out my binary option blog Mike’s Binary Option Blog and you can also watch my videos on Youtube… Mike’s Youtube Channel !
Good luck with your trading journey!
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