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
Bulls
High price.
Ursos
Traders working to drive down prices.
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.
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.
Indicator
Mathematical formula that takes into account past price values.
Volatility
What is volatility in simple words? It’s the strength and speed of price movements.
High (strong) volatility:
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.
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.
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.
Item
Change in minimum price.
Support
A level that slows the fall in price.
Resistance
A level that slows down price increases.
Trends
A trend in price movement dominated by bulls or bears.
Lateral
Lateral consolidation – low volatility price movement. An almost ideal situation for binary options. How to trade sideways was discussed in the forum.
Technical Analysis
Beans and rice and maybe even caviar. Seriously, the art of determining market trends and forecasting prices.
Fundamental Analysis A
The art of predicting price movements by analyzing economic factors and economic/political news.
