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Glossary of common terms used in binary options

lexique option binaireHigh/Low: High/low is an option that considers the actual market price and allows you to determine if the market will be higher or lower than the set price.

One Touch: One Touch is an option that considers whether or not the set price will be reached by the market price at expiry.

Boundary : Boundary (limit) is an option in which both a high and a low price is set to create a range.  At expiry, the gain/loss is determined by comparing the market price position to the limits that were set.
 
Yields and returns 

All options provide the client a fixed yield, which is set at the outset and is a defined percentage of the investment amount.

Options that expire «  in the money » will generate a gain of 70%

Options that expire « out of the money » will generate a refund of 0% to 15% of the investment.

Options that expire «  at the money » will result in a return of the total investment to the client.

« In The Money »

« In the money » means that the option is profitable. Options that expire « in the money » have generated earnings.

High/low option

High : Upon expiry, the price is higher than predicted.

Low : Upon expiry, the price is lower than predicted.

« One Touch » Option

The « touch » option means that the market price reached the predicted price before expiry.

Boundary option

An incoming option in which the price falls within the expiry limits (it must be above the lower limit or below the higher limit.)

An outgoing  option in which the price is outside of the expiry limits (below the lower limit or above the higher limit.)

Out of the money

« Out of the money «  means that the option is not profitable. This results in a loss for the investor.

High/Low Option

High : The expiry price is lower than the predicted price.

Low  : The expiry price is higher than the predicted price.

One Touch Option

« One Touch » means that the market price never reached the predicted price before expiry.

« No touch » means that the market price reached the predicted price before expiry.

Boundary Option

The boundary option can be an incoming option at which the expiry level is outside of the limit (below the low limit or above the high limit of the stated price.)

Or an outgoing  option at which the expiry level is within the limits (above the lower limit and below the higher limit of the stated price.)

At the money

The option landed at the predetermined price. Options that expire « at the money » result in neither a gain nor a loss. The investor receives the initial invested amount.

 Option High/Low

A high option for which the expiry price reaches the pretermined price.

A low option for which the expiry price reaches the the predetermined price.

Boundary Option

An incoming option for which the expiry price level reached one of the limits (either the stated high price or the stated low price.)

An outgoing  option for which the expiry price level reached one of the limits (either the stated low price or the stated high price.)

Discover our binary option comparison.

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Warning: Trading Binary Options involves substantial risk and may lead to loss of all invested capital.