Trading, including binary options trading, is full of many different terms that are found only in this industry. Novice traders are not always able to understand more experienced fellow traders – it is for them that this "cheat sheet" has been prepared; the most popular terms used in binary options trading.

Asset

Something that has a price that traders profit from changing. Each asset has its own price chart and value.

Example:

• Currency pairs: EUR/USD, USD/CAD
• Stocks: AAPL, MSFT
• Products: GOLD, SILVER
• Indices: S&P500, NASDAQ

Bulls

Bulls are traders who are interested in a price increase. Often they also say that in the market Bullish mood – there is an upward trend.

Bears

Bears – these are traders seeking to lower the current price of an asset. Bear mood – period of time when the market is in a downtrend.

Currency pair

Currency Pair is an asset that consists of two currencies. In such a pair, one currency buys another.

For example, GBP/USD
GBP –base currency, USD – quoted
Such a currency pair tells us that for USD (American dollar) we buy GBP (British pound sterling) – the price of GBP to USD.

Quote

Quote – this is a price value indicating how much one currency is needed to buy another.

For example, the EUR/USD pair has a quote of 1.11 – this means that 1 EUR (Euro) is worth 1.11 USD (US Dollar).

Indicator, turkey)

Indicator - a kind of mathematical formula that makes it easier to technical price analysis. As a rule, indicators have their own visual design, which greatly simplifies working with them.

Volatility

Volatility – is the strength and rate of change in the price of an asset. High (strong) volatility indicates strong and sharp price movements, low (weak) volatility indicates a slow price change without sharp fluctuations.

Large (strong) volatility:

Low (weak) volatility:

Time frame

Time frame – this is the period of time for which quotes are grouped.

For example, the M15 time frame (15 minutes) indicates that each candlestick on the chart will take exactly 15 minutes to form.

Expiration (expiration time)

Expiration time – transaction completion time. For a trader, this is the time to announce the results of his forecast.

Pips

Point – this is the minimum price change.

Support (support level)

Support – a price level that slows down the fall of the price and prevents it from falling lower.

Resistance (resistance level)

Resistance – a price level that slows down the price growth and does not allow it to rise higher.

Trend

Trend – a steady price movement up or down.

Sideways (lateral movement, flat)

Sideline – this is a price movement during which the price is between two levels of support and resistance.

Technical Analysis

Technical Analysis – a science that allows predicting further price movement only by analyzing the price chart.

Fundamental Analysis

Fundamental analysis – a type of analysis in which the forecast is made after the analysis of economic news.

Risk free trades

Risk Free Trades – transactions that will not bring losses even with an incorrect forecast. Such transactions are provided by the binary options brokers themselves as a thank you for choosing their company.

Trader's trading diary

Trader's Trading Diary – This is a diary where a trader records all the results of his trades. The trading diary is a powerful analytical tool.

Psychological diary of a trader

Trader's Psychological Diary – a diary that allows you to monitor the psychological state of the trader.

Trading psychology

Trading psychology – a science that allows a trader to get rid of all the emotions that prevent profitable trading.

Trading discipline

Trading discipline – a science that teaches a trader to strictly follow his trading plan and perform only the right actions – actions that will bring profit in the future.

Risk Management

Risk Management – a science that teaches a trader how to properly manage his capital.

Demo account

Demo score – this is an opportunity to try your hand at trading without risking real money. Trading is carried out on virtual money. Demo account can be opened with the following brokers:Quotex, Pocket Option, INTRADE BAR.

Correlation

Correlation – a relationship between assets that makes them respond to different factors in the same way.

For example, EUR/USD and XAU/USD (gold) chart:

Consolidation

Consolidation – a long lateral price movement, during which the market gains strength before the next strong jerk.

Call option (up)

Call option – up option. This option is bought if the trader believes that the price will continue to grow.

Put option (down)

Put option – down option. This option is bought if the trader believes that the price will continue to fall.