Binary Options Glossary ? breaking down the lingo
Binary Options Glossary ? breaking down the lingo
Binary Options Glossary – breaking down the lingo
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
ABAnswers
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Login
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Finance > Investing > Binary Options Glossary – breaking down the lingo
Binary Options Glossary – breaking down the lingo
Posted: Jul 23, 2010 |
]]>
Binary Options Glossary – breaking down the lingo
Binary options trading offers investors a quick and easy route to trading online. Fool-proof as it seems for many, there are still some trading terminologies that need to be understood when trading the binary options route. Only when you understand the whole picture of what binary options trading is all about will you then be in a good position to fully reap the benefits and start accumulating your trading success stories. Here we bring to you a short glossary of our hand selected top 5 binary option trading terminologies that will put you in good stead to start trading confidently.
Survival Glossary term # 1
Underlying Asset – This is a financial asset on which the price of a derivative depends on, as in a value that depends on another value. They come in the form of commodities such as oil and copper, indexes such as the Nasdaq and FTSE 100, stock such as Microsoft and Coca Cola and currency pairs such EUR/GBP and AUD/USD. Here at anyoption we offer trading on 61 underlying assets.
Survival Glossary term # 2
Call Option – This is one choice of options you can choose from when trading. When you place a call option on a chosen asset you would receive a profit if the asset expired at an increased level compared to that of it when it was purchased. For example, let’s say you choose to put a 0 Call option on British Petroleum which currently stands at 405.859 and offers a 70% return rate. If the option expires at even 0.001 above the strike price, at 405.860 for example, you would win the 70% return (0) plus your original 0 premium back (0 in total).
Survival Glossary term # 3
Put Option – At the opposite end to a Call option, a Put option provides the investor with a profit when the asset expires below the original purchase price and gives the buyer the right to sell stock at a pre-determined price. These options are often used to protect stock holdings from losses in the event of a decline in the market. For example, you purchase a Put option on the S&P Future of 0 which currently stands at 1,094.561 and has a 67% return rate as you feel it might drop from its current price. With a Put option, if the option expires below the original purchase price, by even 0.001 at 1,094.560 for example, you would win the 67% return () plus your original 0 (7 in total).
Survival Glossary term # 4
Expiry Time – Anyoption currently offers binary options with hourly, daily, weekly and monthly expiry times. The expiry time of an option is the time and date at which an option expires. Expiry times can be used as a tool when trading. For example, the lunchtime financial report advises that the EUR is up against the USD and looks to continue that way for now. A Call option with a 1-hour expiration time for this currency pair could be the early bird that caught that worm and because the expiration time is so short you can be sure the worm wouldn’t get away before the next report is due.
Survival Glossary term # 5
In-The-Money/Out-Of-The-Money – Quite simply, in-the-money is when the price at the time of expiry will earn your return of X% plus your initial premium. For Call options, an in-the-money result would occur when the expiry price is higher than the price at purchase and for a Put option you would be in-the-money if the price at expiration was lower than the price at purchase. Out-of-the-money results would be opposing results for each option.
Now you that have your tools, go get started!
This post is also available in: Spanish
Retrieved from “http://www.articlesbase.com/investing-articles/binary-options-glossary-breaking-down-the-lingo-2884241.html”
(ArticlesBase SC #2884241)
Start increasing your traffic today just by submitting articles with us, click here to get started.
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
Binary Options -
About the Author:
Trade Binary Options & Make Real Money!
Learn the avantages of Binary Options Trading over Traditional Options & how Binary Options can PROFIT for you! Binary Options – also known as Fixed Return Options or Digital Options – have become very popular in recent years. Trading Binary Options on our anyoption™ Binary Options Trading Platform is a novel and interesting method of investing in the financial markets. Trade Binary Options now, if you want to take advantage of the straightforward and flexible way of trading on our Binary Options Trading Platform.
]]>
Questions and Answers
Ask our experts your Investing related questions here…
200 Characters left
I am having more clients who are interesting to invest money in private placement program in INDIA. Please suggest me the best option for bullet trading. Dr. V. B. Rao Dasari drvbraodasari@gmail.com
I am living in Chennai; I want to learn on Swing, day trading & Options; any suggestions on books, online courses
I am in Chennai; where do join for courses on Options, swing & day tradings
Rate this Article
vote(s)
0 vote(s)
Feedback
RSS
Print
Email
Re-Publish
Article Tags:
binary options, binary options glossary, binary options trading, glossary
Latest Investing Articles
More from Binary Options
Betting Offices In Ireland – IG Index, CMC Markets or Cantor?
Reviewing the various spread betting providers Before we start to spread bet we need a spread betting account. In this section I will list a number of spread betting companies available on the Internet. This list is not exhaustive. Choosing a spread betting provider will depend to some extent on your personal preferences.
By:
Betting Champl
Arts & Entertainment>
Online Gamblingl
Sep 17, 2010
lViews: 239
Investing in Penny Stocks: Turning a Small Investment into a Small Fortune
The stock market can be frightening, especially for a beginner. Investing in penny stocks can be a great way to invest slowly and learn without a huge outlay of cash.
By:
Craig Thornburrowl
Finance>
Investingl
Feb 09, 2011
Buying Silver As An Investment Now
Buying Silver as an investment now is considered a smart move by many money experts, who predict that the American Dollar will continue to devalue as the government prints up billions more dollars in an attempt to pump up the economy. Sliver has already shown signs of being a solid investment throughout history, and over the last couple of years the price has risen dramatically, but there is a serious possibility that the price of Silver will explode within the next year.
By:
Rick Jamesl
Finance>
Investingl
Feb 09, 2011
Spread Betting and CFD Trading: Dividends in key stocks cause 0.2% fall in FTSE in quiet session
In his EU market update for 9th February, Nick Serff of spread betting provider City Index takes a look at the price movements that have seen the FTSE fall by 0.2%.
By:
cityindexl
Finance>
Investingl
Feb 09, 2011
Prime Possibility High Reward investment Strategies
There is no proper or flawed resolution however if you occur to get started having a look on the chances of the industry you can be able to make a much clearer decision. All the time be certain the numbers stack up regardless of how large or small the business is and especially if you end up the usage of high possibility top reward investment strategies.
By:
emmacarterl
Finance>
Investingl
Feb 09, 2011
Free MCX Tips Will Go a Long Way in Making your Investment a Success
In these ages of advanced technologies and avant-garde contrivances, populaces from all across the globe are not leaving any stone unturned to lay their hands on some huge returns.
By:
vaishnaviknal
Finance>
Investingl
Feb 09, 2011
Property investments as your dream home
Property investment is on a boon with the insecure stock market. Investing in property can be easy and hassle free if proper research is done and a proper plan is in your pocket to start with.
By:
jstl
Finance>
Investingl
Feb 09, 2011
Successful Trading Of Indian Stocks And Stock Tips
Determining of goals and creating of strategies are the quintessence of successful trading of Indian stocks. There are numerous other factors that need to be considered as well. Rather than considering wholly the price factor, it will be wise on your part to consider the value of the Indian stocks that you are going to invest.
By:
Nirmal Kumarl
Finance>
Investingl
Feb 09, 2011
Safety Tips on Filling out Application for Online Credit Card
So many credit cards applications are being offered on the Internet. Sometimes it is very difficult for someone who does not know how to complete a secure online form. So we decided to give a guideline that will serve as helpful reference for anybody to fill up a credit card application online.
By:
Johnl
Finance>
Investingl
Feb 09, 2011
Commodity Options – Get the ‘raw’ deal with gold options
So what is a commodity? A commodity is a raw or primary product that is produced and for which there is a constant demand for across the market. It is always the same, no matter who is producing it and it is priced determined by its function in the market as a whole. I.e. the greater the demand for the commodity the more valuable it will be. Commodity Options are an appealing investment choice for many traders.
By:
Binary Optionsl
Finance>
Investingl
Jul 23, 2010
Binary Options Trading Platform
anyoption™ is a Binary Option Trading Platform available for private and institutional investors worldwide. Our binary options trading platform is 100% web based, and does not require a software download or any other previous trading experience. Many investors trade binary options with us, as anyoption™ uses the most advanced and stable technologies to assure your safety and satisfaction.
By:
Binary Optionsl
Finance>
Investingl
Jul 23, 2010
Index Options – Stocks in a nutshell
Index options are options whose underlying asset is not a single stock but an index comprising of many stocks, representing a portfolio of stocks or commodities which are grouped in a particular way. The benefits to the investor when trading on these options are that they are gaining exposure to large sections of the market with a single trade and often through a single transaction.
By:
Binary Optionsl
Finance>
Investingl
Jul 23, 2010
A stock option is a contractual agreement that enables the holder to either buy or sell a security at a selected price for a determined time period. The stock option is immune to changes in its market price during the predetermined time period. When purchasing stock options at anyoption™, you have the choice to either employ a Call option or a Put option. Stock options are usually purchased for speculative reasons, meaning that you (the investor) foresee changes in stock prices on the stock mar
By:
Binary Optionsl
Finance>
Investingl
Jul 23, 2010
Stock Options Trading has been popular for a while now, but since the development of binary options trading at anyoption™, stock options trading is at a new level. The three main differences between traditional stock options trading and stock options trading with us is that you can begin trading with a smaller investment, less knowledge of the stock market is required and you cannot change the expiry time of your asset after you buy your stock option. Many traders prefer this way of stock opti
By:
Binary Optionsl
Finance>
Investingl
Jul 23, 2010
The benefits of Binary Stock Options
Stock options. What are they and what can they offer us when investing? Let’s talk about regular stocks first, otherwise known as shares or equities. When investing in regular stocks you are actually purchasing a small piece of ownership in the chosen company and therefore have claim to a part of the corporation’s assets and earnings. This is also known as shareholding. This basically means that, as a part-owner, you would have claim on the company’s assets. This can be a good investment if luc
By:
Binary Optionsl
Finance>
Investingl
Jul 23, 2010
What are Forex Binary Options?
anyoption™ provides you with the ability to trade forex binary options, also known as forex options. They are one of several types of options that customers are able to trade at anyoption™. The basis of trading is the same as with the other assets that we offer, such as stocks, commodities and indices. The process of trading forex binary options with us is quite simple: you can place either a Call Option if you expect the asset to expire above the current level at the expiry time, or a Put Op
By:
Binary Optionsl
Finance>
Investingl
Jul 23, 2010
Forex Binary Options Trading & Currency Trading
For many years now currency trading has been a very popular investment opportunity for individuals from Berlin to as far as Japan. As economic activity in the Western World developed after WWII, new economic and investment opportunities grew considerably. Currency trading alone accounts for over trillion turnover daily. To put it simply, currency trading is the buying and selling of currencies on the foreign exchange, commonly known as forex. Daily turnover on the forex market currently stand
By:
Binary Optionsl
Finance>
Investingl
Jul 23, 2010
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
Binary Options has 20 articles online
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Accounting
Banking
Credit
Currency Trading
Day Trading
Debt Consolidation
Insurance
Investing
Loans
Mortgage
Personal Finance
Real Estate
Taxes
Wealth Building
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Mobile Version
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.
Trade Binary Options & Make Real Money!
Learn the avantages of Binary Options Trading over Traditional Options & how Binary Options can PROFIT for you! Binary Options – also known as Fixed Return Options or Digital Options – have become very popular in recent years. Trading Binary Options on our anyoption™ Binary Options Trading Platform is a novel and interesting method of investing in the financial markets. Trade Binary Options now, if you want to take advantage of the straightforward and flexible way of trading on our Binary Options Trading Platform.
Related Binary Option Articles
Tagged with: Binary • breaking • down • Glossary • lingo • options
Filed under: Business / Investing
Like this post? Subscribe to my RSS feed and get loads more!