Trading Terminology

Trading Terminology

Trade Jargons

As a first time trader, you may come across many technical terms and sayings that you might not understand at all. Through our series of trading guides, we are now presenting your jargon and technical terms used in the trading world. 

This guide will give you an insight into a range of different terms and methods that will be very helpful for first-time traders. It is handy to have a deeper understanding of all aspects when placing any trades online.

If you want to be knowledgeable in trading, make sure to check out our other trading guides. We have a large number of them available online ranging from not only about binary options but also about Forex trading.

Let’s now start giving you a run-through explanation of some commonly used trading terms and sayings that you may not yet understand.

When you place a binary options trade, whether, on a web platform or a mobile trading app, you will be given an option of placing trades known as a Put Option, this will help you in anticipating that value of whatever it is you have base your trade around, decreases in value for you to have a successful profit trade.

On the other hand, a Call Option is when you are anticipating that your trade has expired then the value of whatever it is you have based your trade around, increases in value as displayed on a trading platform. 

Everything needs to come into an end; and in the world of trading, every position held will have an Expiry Time. The trades you place will rise or fall in value, higher or lower than the value displayed when you put those trades at the exact time when the trade expires. The amount of time allocated to each trade will vary depending on what business you have chosen to place.

This is a binary options trade that has an expiry time of just 60 seconds. You will likely know the possible outcome of your trade for it will expire after a minute you have placed them.

Once the value of whatever it is you are basing your trade on, reach the one you are anticipating for, then that trade will instantly expire, and you will have a winning trade.

An Index is an indicator or measure of something. In finance, it typically refers to a statistical measure of the change in a securities market. In the case of financial markets, stock, and bond market indices consist of a hypothetical portfolio of securities representing a particular market or a segment of it. You cannot invest directly in an index.

Forex is simply the shortened abbreviation of Foreign Exchange. It is all about the exchange of currencies within the network of buyers and sellers at the agreed price. You need to pair up together two currencies and anticipate the one selected out of those two currencies will rise in value or fall in value against the other currency over some time.

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