At first, we often come across incomprehensible words, so here we’ll go through the most common ones.
Binary options terms for beginners
Active
Something that has a price that we see on the charts. We predict the movement of the price (quotation) and profit from it.
For example:
- Currencies: EUR/USD
- Actions:
- AAPL Indices: S&P500
- Produtos de base: UKOIL
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-01.jpg)
Bulls
High price.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-02.jpg)
Ursos
Traders working to drive down prices.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-03-1.jpg)
Currency pairs
A relação entre os preços de duas moedas. Ao comprar uma moeda, outra é vendida. Por exemplo:
- GBP/JPY
In this case, GBP is the base pair, JPY is quoted.
Currency pair means that for JPY – yen we buy GBP – pound sterling.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-04.jpg)
Quotation
How much one currency is needed to buy another.
For example, EUR/USD, rate 1.22. We need 1.22 dollars to buy 1 euro.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-05.jpg)
Indicator
Mathematical formula that takes into account past price values.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-06.jpg)
Volatility
What is volatility in simple words? It’s the strength and speed of price movements.
High (strong) volatility:
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-07.jpg)
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-08.jpg)
Interbank market
It is also known as Foreign Exchange – FOREX. An unregulated market where banks and investment funds buy and sell currencies. The data about your trades – quotes – is on your charts, where you can make predictions about them.
At the same time, your Binary and Forex trades are generally not displayed on the interbank market. Your brokers simply take bets on these quotes.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-09.jpg)
Period
Time period – the interval by which quotes are grouped.
For example, H1 is a period equal to 1 hour. This means that each candle will be drawn on the chart for exactly 1 hour.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-10.jpg)
Expiration
In binary options, the moment when a trade is concluded. The period of time at the end of which our dispute with the broker about what will happen to the price will end.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-11.jpg)
Item
Change in minimum price.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-12.jpg)
Support
A level that slows the fall in price.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-13.jpg)
Resistance
A level that slows down price increases.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-14.jpg)
Trends
A trend in price movement dominated by bulls or bears.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-15.jpg)
Lateral
Lateral consolidation – low volatility price movement. An almost ideal situation for binary options. How to trade sideways was discussed in the forum.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-16.jpg)
Technical Analysis
Beans and rice and maybe even caviar. Seriously, the art of determining market trends and forecasting prices.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/06-17.jpg)
Fundamental Analysis A
The art of predicting price movements by analyzing economic factors and economic/political news.
![A Brief Dictionary for a Binary Options Beginner](https://binarioinvista.com.br/wp-content/uploads/2022/08/09-18.jpg)