Glossary

White Label

A white label is brand that uses the technology or services of a willing, outside company, and markets it for their own use. This often enables a successful and cost-effective brand, without having to invest in creating the technology and infrastructure itself.

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 purchase

Payout

The investment amount that the trader receives back after the expiry, based on his performance

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

Investment

The amount invested in a specific option

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.

Expriry Time

The designated time and date at which an option expires.

Expiry Price

The price of the underlying asset at the time of expiry according to the feed provider’s real time data. The expiry price determines whether the option has expired in-the-money or out-of-the-money.

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.

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.

At-the-money

If the option expiry price is the same as the buying price

Asset

A stock, commodity, currency, or index.