ASSET
A stock, commodity, currency, or index.
AT-THE-MONEY
If the option expiry price is the same as the purchase price.
CALL OPTION
An option that provides the holder with a fixed profit when the underlying asset is higher at expiry than the price level at which it was purchased.
EXPIRY PRICE
The price of the underlying asset at the time of expiry according to the liquidity provider’s real time data. The expiry price determines whether the option has expired in-the-money or out-of-the-money.
EXPIRY TIME
The designated time and date at which a binary option expires.
IN-THE-MONEY
A trader’s option is in-the-money when his prediction on the direction of the trade was correct at the end of the expiry time.
INVESTMENT
The amount invested in a specific option.
OUT-OF-THE-MONEY
A binary option is out-of-the-money when the trader’s prediction was incorrect regarding the direction of the price by expiry time.
PAYOUT
The investment amount that the trader receives back after the expiry, based on his performance.
PUT OPTION
An option that provides the holder with a fixed profit when the underlying asset is lower at expiry than the price level at which it was purchased.
RATE
The price of an asset.
STRADDLE
Placing a call and a put on a particular asset to which the call is lower than your initial put. Meaning if it lands in the middle you win both, if the asset expires outside of one, the other wins thus reducing risk.
Top