Binary options glossary

A

Across-the-board fall in prices
The market decreases each currency and sector in each month at the same time.

All-round quotation
The market increases each currency and sector in each month at the same time.

a name, issue, currency
It is the name of the securities that you can trade with a securities company.

B

Binary Option
The option means the adding order of the products or service. Binary option is a choice between two. It collects the limelight in the trading world.

Broker
It is the middleman to trade a bond, credit, and a currency.

C

Call (Call option)
It is the “High” part in high-low trade in binary options.
It means the option that you though the rate goes up. If you guess the higher price in judging time than when you purchase, you use the “Call.”

Candlestick
It is a type of a graph in the chart.
In a leg, there are four prices shown: opening price, high price, low price, and closing price. It illustrates whether an end price was higher or lower than start price at the end.

Central bank
It is the bank to settle an account when each bank in each country finish the currency trade.
It means the option that you though the rate goes up. If you guess the higher price in judging time than when you purchase, you use the “Call.”

Chart
It visualizes the price trend to a graph.
Each bank has an account for settlement in the central bank so that the settlement is conducted through the deposit and charge the account.

Closing price
The price when trades a day finishes.

Closing time of purchasing
It is the end of the time to purchase in binary options. If the time is over, you cannot buy this.

Currency pair
The currency pair to trade.
For example, it is currency pairs like “Yen/Doller,” “Yen/Euro,” “Yen/Pond.”

E

Economic indicators
It is the numerical value of economic activity.
When the critical economic indicators are shown, you need to check it because the market might move drastically. You have to get accustomed to watching the news to understand the situation in the world.

F

Federal Open Market Committee
It is the Policy decision committee in U.S. Federal Reserve Board.
It decides financial policy, official discount rate, and open market operation in the US.

Fluctuation
It is also called the fluctuation of the market prices.
It repeats the small price changing. As a result, the trend seems to be vibrating or stable.

Forex, FX
FF rate means the vital short-term interest in the U.S.
Private banks joined with Federal Reserve System (FRS) uses this interests when they given unsecured loan each other to control prepared savings.

Foreign stocks
It is the stocks of offshore companies.
If you want to trade with that, you need to open “Forex account” in a securities company.

FOMC
It is Federal Open Market Committee.
It is the committee to decide the financial policy in the U.S. It significantly affects the global economy and every country watches the chairperson’s interview and statement.

Fundamentals analysis
It is the analysis of the price movement with the economy and the situation of the country.
The economic index in the news can be one of the resources.

G

GDP (Gross domestic product)
It is one of the most famous economic indexes.
It is calculated with the profit by the whole consumed service in a country a year.

H

HIGH/ROW
It is one of the ways of the binary option.
It is the way to expect whether it is “Strong yen” or “Week yen” than the designated currency.

High price
It is the highest price at the day. ⇔ low price

I

ISM
It is one of the most important economic index.
Institute for Supply Management conducts questionnaires to about 350 purchase clerks in the manufacturing industry to make this.
If the point excesses the 50 points, which is the branch point of economic assessment, we can say that the commercial expand. If it is under, the economy goes into recession.

L

leverage
In the Forex, it is the service that you can trade with a few times of your budgets. The proportion or service is the leverage in Forex.
There is no leverage in binary options.
If you use it, you can take more profit. However, you might have the risk to lose more money.

M

MACD
It is the abbreviation of “Moving average convergence diffusion technique.”
You can get the market cycle and timing together with average moving (It is two lines: MACD and straightforward moving averaged signal). It is quite useful because you can see both price trends and trading timing.

Market follower / Contrarian
It is the investment method. The market follower is the way to trade followed with the market trends. The contrarian is opposite to the market follower, and it is the trade with the reversed pattern of the trend.

Maximum purchase price
It is the maximum purchase price a trade.
You cannot buy the ticket beyond this. It is as same as the minimum purchase price; you need to check it before opening your account.

Meeting of the Bank of Japan Policy Board
It is the meeting to discuss and decide the financial policy.
It holds for two days. Everyone watches this because the regular press conference by the governor of the Bank of Japan at the end of the meeting affects the market a lot.

Minimum purchase price
It is the minimum price a trade.
Each broker set it, so you need to check before you open the account.

N

Nikkei 225
The 225 stock price index is the fixed average-type index which is the base of Nikkei Average Stock index future.
It was born in 1949 and kept being used by now.

O

One-touch type trade (Touch, non-touch)
It is one of the methods of a binary option trade.
It is whether the prices touch the pointed rate by the judging time.

Opening price
The first trading price a day.

Option-trade
It is the trade for the right like stocks, foreign currency, or commodities.
It is the part of a derivatives transaction. In short, it is “The trade of the right.”

P

Payout rates
It is the proportion of dividend when your option was correct. The dividend is going to be “Number of tickets x payout rate.”
The payout rate is different by the companies, but the average is around 1.8-1.9 times.

Producer price index
It is similar to the wholesale price index in Japan.
It is the index that shows the price level on the price index in the U.S., which is calculated with a sales price of American maker by US department of labor.

Profit taking
It is the thing you take a profit.
You can make it earlier to earn a profit. It may decrease a gain, but you will win more.

Purchase hour
It is time you can buy commodities in binary options from starts to ends.

Put (Put Option)
It is the low part of High-low in binary option.
It is also the option you put because you thought the rate goes down. You thought the price is lower in judging time than when you purchased; you use “Put.”

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Range type trade (Boundary)
It is the one of the way of trading in the binary option.
It a range type trade, you have to expect whether it is inside the range or not in the judging time.

Rollover
It is the extension of position; in short, the balance carried forward.
It is useful when you are about to lose your money, but it might be chance to win after a little patient.

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Sideways trade
It is the market which fluctuates in a specific range.

Stock market index
It is the calculated value of each currency and stocks in the whole market with statistics. For example, the famous ones are the stock average and adjusting stock price average.

Stock price index
It is the general proportion of price movement in many currencies. The famous ones are Nikkei Stock Average and TOPIX.

Stop-loss
It is the loss on your trading, but you sell it with understanding and stop the damage in minimum.

T

Technical analysis
It is the analyzation of the price movement by the past trend. For example, it is the candlestick or average movement.

The Bank of Japan
It is the central bank of Japan based on the Japanese bank regulation.
It has three functions: the bank of issue, the bank of the bank, the bank of the government.

Ticket
It is the right to get a dividend if you are correct whether “HIGH” or “LOW” in binary option. The purchase price is going to be your investment.

Trend
It is the rough price movement trend. The increasing one is called “Uptrend,” the opposite one is called “Downtrend.”

Trend line
It is the line connected to low prices or high prices. You can see the rough trend whether it is uptrend, downtrend, or stable.

U

Unemployment rate
It is one of the most famous economic indexes.
It is the proportion of unemployed people in all workforces. In short, it is the number of unemployed people divided in total workforces.

Uptrend
The upward trend of the price.

W

Waiver
It is the thing that you do not wait for the judge and sell the ticket at current rates in binary options trade.

World Bank
It is the specialized agency in the United Nations.
The main branch is in Washington, D.C. It is the agency which invests in a member nation and private companies which cannot collect enough capital in the long term.