Trading Terminology

trading terminologyWhen you first become a Binary Options trader you are going to come across lots of terms and sayings, many of which you may have no understanding of. With that in mind and as part of our ongoing series of trading guides we present to you our trading terminology guide below.

Please do take a good look through this terminology guide for it will give you an insight into what a range of different terms and sayings mean which will obviously allow all first time traders to get a much deeper understanding of all aspects of placing any tyre of Binary Options trade online.

If you are a novice or inexperienced trader then make sure you also take a look at all of our other trading guides, for we have a large number of them available and they not only over Binary Options but we have also got several Forex trading guides available.

Should you be interested in finding a top rated Binary Options Broker or a Forex Broker at which to sign up to and place all manner of different real money trades then please also make use of our information packed Broker reviews! We have reviewed all of the best rated and fully licensed and regulated Binary Options and Forex Brokers and have some exclusive new trader bonuses and other special promotional offers to introduce you to.

Let us know give you a run through and an explanation of some of the most commonly used trading terms and sayings which you may not yet understand.

Put Trade – Each Binary Options trade you can place online or on a mobile trading platform will give you the option of placing what is known as a Put Trade. This will see you hoping that the value of whatever it is you have chosen to base your trades around decreases in value to a certain value for you to have successfully placed a winning trade.

Call Trade – If you have opted to place something known as a Call Trade then you will be hoping that once your trade has expired then the value of whatever it is you have base your trade around increases in value above a certain value as displayed on the trading platform for when you struck that trade.

Expiry Time – Every single type of Binary Options trade you can place will come with its own expiry time, the trades you place will then have to rise or fall in value higher or lower than the value displayed when you placed those trades at the exact time the trade expiries. The amount of time allocated to each trade can and will vary depending on just what trade you have chosen to place.

60 Second Trades – A 60 second trade is a Binary Options trade which as the name suggest has an expiry time of just 60 seconds, and as much they are trades which you will soon know your fate for they will expire one full minute after you have placed them.

One Touch Trades – A One Touch trade is one which does have its own expiry time, however what makes these types of Binary Options trades unusual is that once the value of whatever it is you are basing your trade on reach the one you are hoping it will then that trade will instantly expire and you will have placed a winning trade.

Indices – One of the many different things that you can base your Binary Options trades on is any of the major wild wide indices. So for example if you think the London Stock Exchange’s FSTE 100 will rise or fall over any given time period then you will be able to place a Binary options trade on that stock index.

The one thing that you can guarantee on any stock exchange is whilst that stick exchange is open for business its value will wildly fluctuate either upwards or downwards in value, which will ensure you always have a chance of using your skill and judgment to correctly predict the movement of the exchange based on any current financial news stories and the like.

Forex – Forex is simply the shortened abbreviation of Foreign Exchange, and what you will find on offer any many of our featured Brokers is a range of Forex related trades that you can place. You will find that when placing a Forex related trade you need to pair up together two currencies with the hope the one selected out of those two currencies will rise in value or fall in value against the other currency over any given time period.

Commodities – There are a large range of what are known as Commodities that you are going to be able to place and base your Binary Options trades around, and to have a winning trade you need to choose whether the value of any commodity is going to rise or fall over a given time period.

There are of course many different commodities you can base your Binary Options trades around including but certainly not limited to Gold, Silver, Copper, Coffee, Crude Oil, Corn, Sugar, Wheat and Platinum to name but a few of them.

Stocks and Shares – Another type of Binary Options trades that you can place online or via a mobile trading platform will be based on the share price value of a range of different companies. If you wish for example to place a trade on the value of a bank’s share price or any major company such as Coca Cola for example that that is something you will be able to do.

As you will be aware the share values of all major companies can fluctuate often quite wildly more so when they are due or have just announced their annual profits or are issuing a profits warning, and by keeping your ears to the ground and well abreast of all major news stories you could make continuous profits when trading on the value of any company’s price price.