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American Option - 

An option that can be exercised anytime during its life.

Ask - 

The purchase price of an underlying asset.

Asset class - 

This is a specific kind of investments, e.g. stocks, Forex, commodities and indices.

Assets - 

Stocks, commodities, indexes or Forex currency pairs.

At-the-money - 

When the call and the put options will be identical at the expiry time. Investors receive full refunds of the money they deposited in the beginning.

Bear - 

This is a trader who predicts that market prices will fall.

Bear Spread - 

This is a binary options strategy when finding the optimal benefits when the underlying asset falls.

Bid - 

The price at which an asset can be sold.

Binary options - 

Binary options are also known as fixed return trading. They can be used to trade assets and they payout pre-determined profits and losses.

Bond - 

A debt investment in which an investor loans money mostly to a government or corporation.

Breakeven price - 

This is the value to be achieved in order that the trader begin to realize a profit.

Bull - 

This is a trader who predicts that market prices will rise.

Bull Spread - 

The sum an asset has to be sold to cover initial cost of acquiring.

Butterfly Spread - 

A limited profit and risk binary option strategy that is a combination of both bull and bear spreads. The butterfly spread is centered on 3 striking prices and can be constructed using calls or puts.

Call option - 

An option that will cause a pre-determined profit if the price of its underlying asset is higher at its expiry time than its opening.

CDO - 

Collateralized debt obligations are a form of organized asset-backed securities (ABS) whose values and payments are derived from a group of fixed-income underlying assets.

Commodities - 

This asset type consists of goods and services that meet human needs and wills such as energy, food and metals.

Correlation - 

A statistical measure indicating the degree of movement related to two different currency pairs.

Credit Default Swap - 

A swap contract involves buyers performing a series of premium payments to the seller in exchange for a refund should the asset go into default.

Currencies - 

Are forms of  money used as an exchange between buyers and sellers.

Currency Option - 

Presents a trader with the right (but not obligation) to buy or sell a predetermined quantity of a particular currency at a specified exchange rate.

Currency Trading - 

The buying and selling global currencies. Currency trading is used by banks and financial institutions to support international trade. Individual investors can also speculate on currency trading using Forex.

Current Price - 

The last reported real-time price of the underlying asset unless otherwise specified.

Euro - 

The authorized currency of the Eurozone and is the world’s second largest reserve currency.

European option - 

This is an option that can only be carried out on its expiry date.

Exotic Option - 

This is a derivative possessing qualities that make it more complex than other commonly traded products such vanilla options.

Expiry Price - 

The real-time price of the binary options underlying asset indicated at the nominated time of expiry. The value is used to determine if the binary option expired in-the-money or out-of-the-money.

Expiry Time - 

The time and date at which a binary option lifetime will terminate.

Financial Transactions - 

These are events when contracts concerning buyers and sellers are concluded in order to exchange assets for payment regularly resulting in a change in the financial position of the parties involved.

Forex - 

Forex is the most liquid and chief financial market in the world used to exchange and trade currencies by large fiscal institutions, businesses, governments, banks, currency speculators, other  institutions and individuals.

Forex Option - 

These binary options use underlying assets based on currency pairs traded on Forex, e.g. GBP/USD and EUR/USD.

Futures - 

This option has a static payoff.  Often referred to as the ‘all or nothing’ option or ‘one touch’ option.

Hedging - 

A strategy utilized to maximize risk management. Typically this involves taking equal yet opposite positions in two diverse markets.

In-the-money - 

A term used for both a call option and a put option. For a put option this occurs when the strike amount is above the market price. Alternatively for a call option this occurs when the strike amount is below.

Indices - 

Collections of stocks assembled according to a certain criteria.

Interest rates - 

A figure that denotes the cost of borrowing money, generally outlined as a percentage.

Intrinsic value - 

The gap between the opening and the current price of the underlying asset.

Investment - 

The amount of capital outlaid with the intent to make profit.

Investment Amount - 

The amount of equity invested in a binary option.

Liquidity - 

Also referred to as marketability, liquidity is the fast ability to convert cash.

Loan - 

An amount of money that the lender gives the borrower.

Long - 

Purchasing an asset with the anticipation it will increase in value.

Lot - 

The number of shares a trader can buy in one transaction.

Margin Account - 

An account where the client is lent cash for secure investments.

Mid-Market - 

The real market worth of an asset. The price is determined by the average of the bid and ask price.


National Association of Securities Automated Quotations is the biggest electronic screen-based capital securities trading market in the USA and fourth in the world. There is no physical exchange involved, and thus often referred to as an ‘over the counter’ market.

One-Touch Option - 

Provides the investor with predetermined payout when the value of the underlying asset has reached or exceeded the preselected value. 

Out-the-money - 

The situation when the price registers a lower value at expiry time than the opening or strike one.

Payout - 

The income that investors receive if binary options expire ‘in-the-money’.

Pip - 

The fourth figure after the decimal point in a number. A pip is the smallest tradable unit of currency pairs.

Put option - 

The option to sell an asset at a predetermined amount within a predetermined time frame.

Quotation - 

The highest price an investor is prepared to pay for assets and the lowest price an investor is prepared to accept.

Rate of return - 

The profit or loss of an investment over a appointed time which is usually shown as a percentage.

Reuters - 

Reuters Group Limited is a UK-based Canadian company that delivers information about the international financial markets to the financial industry, media and corporate markets. Reuters's objective is to provide data, news, graphics and trading products.

RTS Index - 

The Russia Trading System is an index that tracks stocks and trade and is calculated in real time.

Security - 

An instrument that represents ownership of a stock, bond or the rights to ownership as represented by an option.

Share Price - 

The price of specific share or stock.

Shares - 

A company listed on the Stock Market can divide its worth into units of equal value which are termed shares. They can then be marketed for sale in order to raise cash. As individual who purchased shares in a company is titled a shareholder and becomes one of the owners of that company.

Short - 

This word is used to describe an investor who sells an asset.

Short Straddle - 

An unbiased binary options strategy involving selling and simultaneously buying the same underlying asset.

Spread - 

The divergence between the Ask and Bid amounts of an underlying asset.

Stock Exchange - 

The place where shares are sold and bought.

Stock Market Analyst - 

An expert who is able to consider professionally the worth of company listed on the Stock Exchange. 

Stock Option - 

A stock option can be sold by one party, that provide the buyer the right, but not obligation, to buy or sell a stock at a predefined  price within a specific time frame or date.


Stocks - 

The initial capital that the founders of the company invest on business or company.

Strip Strategy - 

An unlimited return and risk binary options strategy that is used when investors consider that price of the underlying asset is probable to decline as opposed to increase as a result of increasing instability.

Swap - 

This term describes an exchange of pre-determined payouts during a timeframe. 

Trading hours - 

Individual assets have specific trading hours, days and holidays.

Vanilla Option - 

A standard class of options which basic components include expiration dates and strike.

Volatility - 

This is a measure of price variation of an underlying asset.

Yield - 

Presented in percents, a yield indicates the annual return on an investment.