In the world of binary options trading there is a substantial amount of various terminology present, meanings behind such, and differential dynamics in which said terminology can or should be applied.
Let’s review some of the most frequently utilized terms and define them so that you can make the most sense out of binary options trading, and have the best chance at being most successful and effective in the matter of your trades, how, when, and why you apply them. Most importantly, so you can read all of those ‘fancy’ or confusing notifications and updates and make sense of them, may it be from your financial advisor or in the news, in efforts to maximize your total Return of Invest (ROI)!
Summarized Binary Options Trading Glossary and Key Terms
What is an Asset? To put it simply, an asset or assets, in the case of binary options trading, are the virtual items which you have purchased, may it be in the form of stocks, or through calls and acquiring them later on as you succeed in making profits and increase the amount of stocks or binary options trading items that you have—regardless of the dynamic, might it be an item, food, fuel, or foreign currency ‘betting’.
You might have heard or will hear in the future the term “bear market”, essentially this refers to a stock or set of stocks or investment items, also known as an invest, and one that is dropping rapidly, has already dropped, or has remained low. Often, this also happens to be an indicator of a poor asset that’s otherwise being controlled by the buyers, so this is definitely one you would want to avoid.
What are binary option signals? Essentially, in the binary options trading world there are a multitude of tools, resources, and forms of contact that keep traders and investors in the loop of major, or quite frankly any level of significance, changes in the market of assets or stocks. In lieu of such tools, for example candlestick graphs, this aids the investor in making the most practical decision in ‘buying in’ to an asset, and making the ‘call’ as to whether or not, per its previous or current behavior, to project what they believe the next move will be of that asset, and then face the potential of profiting off of such a ‘call’ or investment.
Binary Options Software—This term is quite self-explanatory. It is, indeed, a software or set of software’s that are created with user-friendly design to aid or assist in the following and decision-making process of investing in binary options trading.
Bonus Options—Bonus options are quite common within both accredited and non-government recognized binary options trading brokers. Essentially, bonuses are setup (initial deposits) and match what you’ve initially invested, or for when you’ve accrued substantial amounts of ROI from making good ‘calls’, the broker will reward you with monetary ‘bonuses’.
Broker Reviews- Broker reviews are just that, reviews of a broker identifying key strongpoints and weak points, in the form of written, audible, or visual reviews, found throughout the markets and the internet worldwide.
Bulls Market-A Bulls Market, is essentially reflect of a particular asset or stick rising over a period of time, typically reflective of buyers being in control of said asset and market, thereby eliminating the majority of doubt or lack of easement over whether or not to invest into such a stock.
What’s a CanstleStick Chart? As we’ve mentioned it previously, CandleStick charts are essentially a form of grid or graph that display short-term and long-term market changes of an asset or asset, and aid in the development of making responsible, practical market predictions to maximize ROI—one of many useful broker tools available!
Call Option—While typically referring to the ‘call’ or guess of a stock or asset rising, ‘call’ can or rather has been used in a neutral format to identify the action or anticipation of a market asset change.
Charting Solution—One of the many binary options trading broker tools, a charting solution allows investors to watch and observe real-time market changes of an asset or asset, while also dropping pins, markers, or other identifiers to keep track or make self-notes of market changes that could significantly impact ones ROI—or Return of Investment.
Close Now—in some cases, on the market, dependent upon the timing and your broker, if you see an asset falling, you can drop, remove, or reverse your ‘call’ to be against what you had previously, and attempt to redeem any lost or remaining funds of investment.
Commodities—Also known as assets, this is a rather simple term, frequently applied to discussions and used to depict stocks, etc.
Correlation Assets—While not extremely common, it is possible to group together and invest, as well as make ‘calls’ on two-related assets going up or down in the market.
Currency Pair—A predesignated currency pair within the market as an asset product, USD and EUR dollars for example.
Deposits—No matter where it comes from, funding is funding, and your account balance is what you’ve invested or made off of it via deposits of money, via credit card, PayPal, or bank account(s).
Digital Options—Although not uncommon, Digital Options are assets that have predesignated ‘calls’, times, or movements that you can invest in and have to abide by the expectations or rules of should you decide to give it a shot!
Execution Rate—Simply put, what level an entry trader submits his or her investment and which assets they pursue.
Exponential Moving Average—Also known as EMA, this simply shows short-term trends of an asset.
Hedging/Fencing—Essentially, this is when you alter or change your method of investment towards a specific asset to apply risk-reduction based on previous loss or gains.
Put Option—Most commonly used to express a downward, decrease, or drop in asset.
SSL—This is a form of added, encrypted security for your data and financial information—so sites using SSL certificates are a primal choice!
Volume—In essence, volume demonstrates the movements, up or down, of an asset or assets in any given market period—often a tool or piece of data that you can ‘hand-craft’ using various broker tools.
While there are plenty of various terminologies used in the binary options trading world, likewise new ones are occasionally developed as well. However, we’re confident that the list we’ve compiled here will be quite useful to you if applied responsibly. Happy Trading!