As a lot of other activities, the commerce of binary options uses large number of specific terms that a beginner does not understand. Also rare associations of words are used like «being in the money», «out of status» and strange names like Fibonacci, Gann, Bollinger, etc. So he has to learn something of English because the trading binary options is an activity that was born in Anglo-Saxon ground. These words badly written and badly marked they give a very professional touch to the analyses of the brokers binary options or to the traders that want to impress its public. The truth is that many of these professionals do not achieve to gain money with binary options but they impress the beginners when 100 euros manage to be pocketed with a Putt or a Call and binary options explain its strategy winner using so rare terms. In this article, after explaining what there are the binary options, we will happen to describe some of these terms to facilitate its comprehension.
The binary options are good-looking on the tendency of the price of assets
Assets are the product on which he bets a trader. There are 4 big assets categories: the actions, the indexes, the raw material and the pairs of the Forex. On the other hand it is necessary to bear in mind that the price of the exercise is the price of the assets at the moment of beginning the bet of binary options. Two types of bets exist in this commerce: The binary options Call that are good-looking to the buy (or on a tendency of upward price) and the binary options Putt that they are to the sale (or on a tendency of downward price).
The expiration is the moment in which it finishes the bet. This contract usually lasts from 60 seconds until several hours. But the trading binary options is an activity of rapid operations and it is strange that the bets are late more than two hours. When he conquers the contract of binary options, the investor will be in the money if he predicted with wise move the direction or, in the opposite case, it will be out of the money and will have lost the bet.
The binary options are good-looking of «quite or not at all», that's why they are called binary; or it is gained or gets lost. Although there exists a third option that is at the money that it is when the price of closing of the assets is equal at the cost of the exercise. In this case, the platforms binary options apply a rule proper intern. The investor can lose or recover its bet depending in the one that is operating. He will realize also that there are brokers binary options that offer comebacks of 5, 10 or 15 % of the bet in case of loss.
The payment is the money amount perceived on having gained binary options. The values of the payments of the binary options are determined to the beginning of the contract. The magnitude of the tendency of the price does not matter, only its direction is of interest.
To end with this small glossary, there exist other ways of doing trading binary options. It is possible to bet in the range indicating a status of prices inside which it will have to finish the price of the assets on having conquered the contract. Another way there are the binary options One Touch that are used when the investor indicates a precise price that will have to touch the tendency at least once during the time that the contract should be valid.