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Binary Options Glossary

binary_options_trading_systemsAsset – Binary trades are based on the concept that one needs a real, physical object (or just as real financial tender) on which to be presented a price and decide what kind of option will suit this commodity/stock/bond/currency etc. the best.
Bearish – should one consider himself (or is referred to) as being bearish or a bear, then that entails that the person in question believes that the prices of a certain asset are going to fall in the near future.
Breakout – when we witness a pronounced change in price (going over/under the support and resistance levels), that even is considered a breakout. If we are to put it another way, a breakout is a fluctuation anomaly that passes through the expected high-low price levels of the given asset. One school of though is that once observed, such evens are expected to stay in effect, for at least a short while. Others however believe that a breakout is an almost certain indicator that the price will be stabilizing before any bets could be placed for that particular time-line. The event where a breakout starts big, but quickly changes back to its original state is called a fakeout.
Bullish – being bullish (or a bull) means that a trader believes the prices are going to go up (or rise) in a very short while.
Call/Put Options – Call is referred to the event where the trader buys a certain quantity of an underlying asset, for a specific price and for a determined amount of time time. The Put option is implemented when a trader wishes to see a certain asset, for a certain price under a predetermined amount of time.
Candlestick Pattern – Like the civilizations of old, many investors will point out patterns in the price charts based on what they look like generally (as it is with the candlestick pattern, which of course resembles a candlestick in form). A standard line chart will only point out the closing price of that particular day on a graph/chart, Candlestick patterns show not only the closing price, but the open, high and low prices as well. Some more optimistic traders claim that they can see when the price of a certain asset is going to jump/fall, based on observing these so-called Candlesticks on previously submitted data.
Commodities – The term is used universally throughout the financial world to talk about goods that are useful and/or can be used in production. These can include agricultural products like rice, wheat, sugar, coffee etc. They can be related to the industry sector, like when we talk about natural gas, oil, steel, coal etc.
Doji – Doji refers to the Candlestick pattern, for we can trace back its originates to about 300 years ago, when the Japanese used this pattern to predict changes in the prices of rice.
EURAUD – EUR (Euro) and AUD (Australian Dollar) written like this, represent the EUR-AUD currency pair in relation to one another.
EURUSD – EUR (Euro) and USD (United States Dollar) written like, this, represent the EUR-USD currency pair in relation to one another.
Exponential Moving Average – Abbreviated EMA; for more information see Moving Average
Fibonacci numbers – Sometime during the 12th century, an important Italian mathematician named Leonardo Fibonacci discovered (and practically established) a number sequence, that consistas of a chain of numbers, where each following number is the result from the combination of the two previous numbers (1; 1; 2; 3; 5; 8…) This sequence was discovered well before it could be implemented in any free market trading, but some experts still believe it can be used beneficially for the purpose of monitoring stock charts.
Flags/Pennants – These two charts patterns which can played either bullish or bearish (the trader can either buy a Call or a Put option, depending on the situation). These patterns can be noted after witnessing a big move in the action price, with the tendency to continue like that in the future.
Forex – Forex is just short for foreign exchange; also known as FX.
Fundamental Analysis – implementing basic but fundamental financial and corporate data, as a part of an trading/investment strategy. An example of this would be hearing about some company going out of business, or the merging or separation of conglomerate/sister companies etc.
Futures – When a trader wishes to buy or sell a certain asset in the future, this sort of investment is referred to as an Futures investment. Both the time and the price are predetermined when both parties sign the appropriate contract. It obligates for the holder and the broker, that contract will be met upon the agreed time and conditions.
GBPEUR – GBP (British Sterling) and EUR (Euro) describes the currency pair as having a relation with one another.
GBPUSD – GBP (British Sterling) and USD (United States Dollar) describes the currency pair as having a relation with one another.
Hammer – part of the Candlestick Patterns.
Hanging Man – part of the Candlestick pattern
Intraday – this is the colloquial term when someone refers to within a day, most often in relation to refereed to a style of trading practised by some traders.
Inverted Hammer – part of the Candlestick Pattern
Moving Average – a common technical analysis study which indicates the average value of any given asset price, over a determined period of time. There is a whole study dedicated to this subject; featuring many different kind of moving averages (weighted, exponential etc.). A simple moving average will produce a monitoring chart, where the rise/falls of the price of an asset seems to be gathered from a more prolonged/general study of the market; whereas other moving averages might use more recent and specific data. Moving averages come from summing up the closing price for a certain asset, at the end of the predetermined time.
Overbought/Oversold – when we observe rapid changed in the price value of a certain asset (it can be either up or down) it is said to be oversold or overbought, respectively. The capable trader will then conclude that given the unpredictable nature of the event, soon the price is going to revert back to its original levels.

Pivot Points – Pivot points can be summed us as being the average prices, measured under a certain period of time, that are the end result of a calculation featuring the high, low and close prices for the certain asset.
Price Reversal – when the price of a certain asset shifts from usually being bullish to being bearish.
Resistance – the highest/lowest point above the action price, which is determined by how much was the price able to fluctuate before revering to close its original position.
Shares – the same a stocks.
Shooting Star – a Part of the Candlestick Pattern
Simple Moving Average – reference moving average.
Stochastic Oscillator – as a part of a greater technical analysis strategy, the stochastic oscillator is used to measure the momentum of a certain price, by super-imposing it over older records of the movement of the price, over a certain period of time. A 5 days stochastic oscillation analysis will monitor the progress of the price of a certain asset, by looking at the records from the previous 4 days.
Stocks – Stocks (or Shares as they are known in the UK and Australia), entitle the holder of that share (more commonly set of shares) to technically “own” a part of a publicly traded company, for as much as the share is worth.
Support – The lowest point of which a certain price drop over a given period of time, is regarded as the support level for that period.
Technical analysis – Fundamental analysis employs corporate and economic data to formulate trading options, Technical analysis uses only the volume of the price of an certain asset as a draw-point, to make its predictions, as well as making predictions based on price-related statistics rather than the intrinsic value of the asset in question.
Touch And No-Touch Options – these two popular options are used independently from each other, depending on whether the trader predicts that the price of a certain asset is going to touch a certain predetermined mark or not.

Trend – seeing common patters that could be a clear indicator that is time to place a bet. Trends are usually easily determined, based on how much experience a trader making the guess has.
USDCHF – USD (Untied States Dollar) and CHF (Swiss Franc) when written like this, represent the currency pair as having a relation to one another.
USDJPY – USD (Untied States Dollar) and JPY (Japanese Yen) when written like this, represent the currency pair as having a relation to one another.

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