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Binary Options Terms

Binary Options Terms

All-or-none order (AON)
A type of option order which requires that the order be executed completely or not at all. An AON order may be either a day order or a GTC (Good til cancel) order.
At-the-money / At-the-money option
A term that describes an option with a strike price that is equal to the current market price of the underlying stock.
Bearish
An adjective describing the opinion that a stock, or a market in general, will decline in price – a negative or pessimistic outlook.
Bullish
An adjective describing the opinion that a stock, or the market in general, will rise in price – a positive or optimistic outlook.
Call Option
A call option provides the investor with the opportunity to gain if the asset rally’s above  the open rate of the call transaction in the event that the expiry rate is the same as the open rate, the investor will be refunded with the full investment amount.
Commodities
Commodities is a general name given to raw materials from a variety of sectors such as energy, food and metals. for more information see “asset index”.
Expiry Rate
The price/level of the underlying asset when the option expires. This price determines whether the option is in-the-money, out-the-money or at-the-money.
Expiry Time
The time & date when Binary Option expires and reaches the end of its predetermined life cycle.
In the Money
A financial term, which means that the option is profitable (for example – if the option was a Call – then the current price of the underlying asset would be higher than the original price at the time the option had been purchased).
One-Touch Option
An option which gives the investor a predetermined fixed payout once the price of the underlying asset reaches or surpasses a predetermined level. To be eligible for payout, it is sufficient that the option touches or surpasses the predetermined level just once throughout the option’s life cycle. If the predicted level is not reached or surpassed even once, the initial investment is lost.
Out of the Money
A financial term, which means the option in not profitable.
A Digital option Call Option is out-of-the-money when the asset’s Expiry Price Level is lower than the option’s buying price.
Put Option
A put  option provides the investor with the opportunity to gain if the asset drops below  the open rate of the put transaction. In the event that the expiry rate is the same as the open rate, the investor will be refunded with the full investment amount.

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