Binary Options Brokers
   
Binary Options Brokers
Brokers Opciones Binarias
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Binary Options Dictionary

 
Below you will find the most common terms used in binary options trading.
 
Binary options - Options with only two possible outcomes. The binary options can expire "In the money" and generate profit or "Out of the money" and generate a loss. Binary options are also called "digital options" or "two way options".
 
Boundary options - A special type of binary options where the trader must predict if the asset value will stay between some predefined levels (boundaries) or if it will expire outside the boundaries.
 
Call option - A call option is a binary option that generates profit if the asset value is higher at the expiry time than it was when the option was purchased. Call options are bought when the price is expected to increase.
 
Digital options - Options with only two possible outcomes. They are better known as "binary options".
 
High / Low options - The standard type of binary options, where the trader must predict if the asset value will increase or decrease compared to the purchase value. High / low options can be of two types: call options and put options.
 
In the money - When an option finishes "in the money" it means that it generates profit for the trader.
 
Option expiry - The deadline of the option. This is the moment when the option expires and the asset value is compared to the value at the purchasing moment.
 
Option refund - The amount of money that is refunded to the trader if the option finishes out of the money.
 
Out of the money - When an option finishes "out of the money" it means that it generates a loss for the trader.
 
Put option - A put option is a binary option that generates profit if the asset value is lower at the expiry time than it was when the option was purchased. Put options are bought when the price is expected to decrease.
 
Touch options - A special type of binary options where the trader must predict if the asset value will touch a certain value until the expiry time. Touch options can be "Touch up" and "Touch down" options depending if the touch value is higher or lower than the current market value. In both cases, the trader can buy a "Touch" or "No touch" option.