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Friday, June 13, 2014

Trading Terminology

Words and Definitions http://jvz9.com/c/85487/108595

Ask

This is the price at which an investor can buy an asset in the financial markets. The ask price is a part of the formula which is used to calculate the expiry level of an asset.

Assets

yourdomain enables trading on a variety of assets, for more information about each asset and the related expiry rules see “Asset Index”

At-the-money

A financial term, which means that the current price of the underlying asset is the same as the price when the option was purchased.

Bid

In financial market assets have a bid price, this is the price at which an investor can sell an asset in the financial markets. The bid price is a part of the formula which is used to calculate the expiry level of an asset.

Call option

A call option provides the investor with the opportunity to gain if the asset rally’s above the open rate of the call transaction. In the event that the expiry rate is the same as the open rate, the investor will be refunded with the full investment amount.

Execution rate

The entry level of the investor to the trade.

Expiry rate

The price/level of the underlying asset when the option expires. This price determines whether the option is in-the-money, out-the-money or at-the-money.

Expiry time

The time & date when Binary Option expires and reaches the end of its predetermined life cycle.

In-the-money

A financial term, which means that the option is profitable (for example – if the option was a Call – then the current price of the underlying asset would be higher than the original price at the time the option had been purchased).

Indices

Index represents a basket of stocks. for more information about the indices traded on the platform see “asset index”

yourdomain rates

yourdomain enables the client to buy or sell an asset with no market spread. The open rate for a put option = open rate of a call option.

Mid Market

The average of the bid and ask, this price represent the real price of the market with no spreads between bid and ask.

One-Touch Option

An option which gives the investor a predetermined fixed payout once the price of the underlying asset reaches or surpasses a predetermined level. To be eligible for payout, it is sufficient that the option touches or surpasses the predetermined level just once throughout the option’s life cycle. If the predicted level is not reached or surpassed even once, the initial investment is lost.

Out-the-money

A financial term, which means the option in not profitable.
A Digital option Call Option is out-of-the-money when the asset’s Expiry Price Level is lower than the option’s buying price.
A Digital option Put Option is out-of-the-money when the asset’s Expiry Price Level is higher than the option’s buying price.

Put option

A put option provides the investor with the opportunity to gain if the asset drops below the open rate of the put transaction. In the event that the expiry rate is the same as the open rate, the investor will be refunded with the full investment amount.

Reuters

Reuters system, one of the world’s leading financial data provider. It is the system which yourdomain takes its expiry rates from.

Stocks

Stocks confirm that the holder of stocks has purchased a percent of a company and as such is entitled to a profit sharing relative to the percent he has in the company. In case of a bankruptcy the stock holders are the last to receive any of the company’s assets.

Trading hours

Each asset has its own trading hours and trading days and holidays. To see the assets trading hours click asset index. Sometimes you will see that even though the asset is supposed to be traded it’s not listed. In such a case simply press refresh.


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