Binary Options Glossary

Binary Options Trading – Type of trading where you put money behind your prediction of future changes in a value of an asset in certain period of time

Broker – Trading platform that gives traders ability to trade with Binary Options.

In The Money (ITM) – Successful, profitable binary options trade

Out of the Money (OTM) – Unsuccessful binary options trade

At the money – Value of an asset remains the same at expiry time and you are refunded with the amount of your investment

High/Low Binary Options – Most common type of binary options trading, high options expire ‘In the Money’ if the price of traded asset is higher at closing time than when the position was opened and vice versa.

Touch or No Touch Binary Option – Touch options expire ‘In the Money’ automatically if the targeted price of traded asset is reached before closing time and vice versa.

In or out Boundary Binary Option – In Boundary options expire if the price of traded asset is within set and predicted boundaries at closing time and vice versa. The asset’s price should be higher than the chosen low price, and lower than the chosen high price.

Expiry – Time at which the option closes.

Close – Time when it is possible to use ‘early close’. If and when you want to close your position click the price listed to collect an early profit.

Bonus – Amount of money that brokers give for free to their clients in order to attract them, usually as a percentage of deposit. Very useful, especially for somebody who plans long term trading with Binary Options.

Risk free trade – Benefit given by the brokers to their clients where client can trade single without risk. If trader wins he collects his money and if he makes mistake broker gives invested money back.

Binary Options Signals – Help and instruction on where to place your money, what trades to make and time frame of one. Usually provided by your Binary Options broker.