Finance Magazine

Basic Key Terms – Binary Options

Posted on the 14 October 2015 by Binarytreasures

basic binary termsHigh / Low: is an option that shows the current market price, this option allows you to decide whether the market will be higher or lower than the price fixed in time.

One Touch One Touch is an option that indicates the target price approaching and the result is to define, if the market price should reach the expected initial price with option expiry.

Boundary: Boundary (limit) is an option stating two indicative prices (a price lying in an increase in a low range and range), thereby forming a limitation. The result of this option is determined by comparison with the market price of its expiry on the distance in this limit.

Returns and Refunds
All options offer the customer a fixed yield, is a percentage defined in advance of the amount of investment compared to the amount of investment.

  1. The options expire on the position “in the money” will generate a gain of 70%.
  2. The options expire on the position “out of the money” will generate a return of 0-15% of the investment.
  3. The options expire on the position “at the money” will result the return of the entire investment to the customer.

In the Money

The term “in the money”, means that this option is profitable, options that expire in the “in the money” position means that they will eventually turn a profit.

Option High/Low

  • High: Means that the target price is above upon expiration.
  • Low: Means that the target price is lower during expiration.

One Touch Option

The touch option means that the market price reaches the target price before the expiry time.

Boundary Option

This is an option for which the incoming boundary and the expiry level (as it means above the bottom and below the top of the target price).

Outbound option for which the expiry level is beyond the limits (as it means below the bottom or above the upper target price).

Expiration Out of the money

Out of the money means that the option is currently trading, is not profitable, this option will result in a loss for the trader.

Option High/Low

High: This means that the expiry level is below the indicative price.
Low: This means that the expiry level is above the target price.

One Touch Option

The Touch option means that the market price does not reach the target price before the expiry time.

The no-touch option means that the market price reaches the target price before the expiry time.

Boundary Option

The Boundary option may be an incoming option which the expiry level is outside the boundary (that is below the bottom or above the upper target price).

An outgoing or which the option expiry level is within the limits (which means that above the lower and below the upper target price).

Expires at the money

This term means that the option is trading the indicative price. The options expire at the “at the money” position are those that expire the target price, the trader will have no gain or loss and recover the amount invested.

Option High/Low

  1. A High option for which the expiry level reaches the target price.
  2. A Low option for which the expiry level reaches the target price.

Boundary Option

An incoming option for which the expiry level reaches a limit (either the lower or upper indicative price).

Outbound option for which the expiry level reaches a limit (either the lower or upper indicative price).


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