Asset
A stock, commodity, currency, or index.
At-the-money
If the option expiry price is the same as the buying price
Binary Option
Also known as Digital Options or FROs, it is a prediction of the direction of a stock, commodity, index, or foreign currency will move by a designated expiry time.
Call Option
An option that provides the holder with a fixed profit when the underlying asset is higher at expiry than the price level at which it was purchased.
Expiry Price
The price of the underlying asset at the time of expiry according to the liquidity provider’s real time data. The expiry price determines whether the option has expired in-the-money or out-of-the-money.
Expriry Time
The designated time and date at which an option expires.
In-the-money
A trader’s option is in-the-money when his prediction on the direction (regardless if it was above or below) was correct.
Investment
The amount invested in a specific option
Out-of-the-money
A binary option is out-of-the-money when the trader’s prediction was incorrect regarding the direction of the price by expiry time
Payout
The investment amount that the trader receives back after the expiry, based on his performance
Put Option
An option that provides the holder with a fixed profit when the underlying asset is lower at expiry than the price level at which it was purchased.
