Trading Terms

 2019-11-14 10:09:32

1.Underlying Asset Type: This is a specific investment group, such as stocks, foreign exchange, commodities, and indices. E.g: Stocks (Google, British Airways, etc.) Commodities (gold, Brent crude, etc.) Index (Nasdaq, UK FTSE 100, etc.) Forex (USD/EUR, etc.) 2.Currency Trading: Currency transactions are used by banks and other financial institutions to support international trade. Individual investors can also use foreign exchange for currency speculation. 3.Rate of Return: This is the measure of the annual return on investment, usually expressed as a percentage. 4.Volatility: This is a measure of the price fluctuations of the underlying asset of an option. 5.Market price: The current market price of a target product provided by the data provider. 6.Binary Options: It is also known as fixed returns and digital options. They can be used to trade underlying assets and pay a predetermined profit or loss that is known to all parties before the contract is exercised. 7.Bullish(up)/bearish(down): In Binary Options, the trader needs to determine that the market price at the expiration date of the option will be higher or lower than its current market price. 8.Call options: A call option is also called a buy option. In this option, the trader believes that the market price at the expiration date of the option will be higher than its current market price. 9.Put options: A put option, also known as a sell option, in which the trader believes that the market price at the expiration date of the option will be lower than its current market price. 10.Expiration Date: The time and date when the selected option expires. 11.Expiration Price: It refers to the price at maturity according to the data provided by the data provider,which is used to determine whether the ups and downs are profit or loss when they expire. 12.Target price: It is also known as the market price, which is the current asset price provided by the data provider. 13.Trading hours: Each asset has its own trading hours, trading days and holidays. 14.Amount of investment: the amount of capital traded by the trader for options trading. 15.Buy(up): This term refers to the purchase of assets by a dealer. 16.Sell(down): This term refers to the sale of assets by a dealer. 17.Profit: If a buy(up) option records a price at the expiration date that is higher than the opening or exercise, it is called profit. Also if the sell(down) option records the price at which the value is lower than its opening or exercise at the expiration date, it is called profit. 18.Loss: A buy(up) option is called a loss if it records the price at which the value is lower than the opening or exercise. Also if the "sell" up option is due.