An asset is something that has a price from which traders can profit due to price changes. Each asset has its own price chart and value. Examples include currency pairs (EUR/USD, USD/CAD), stocks (AAPL, MSFT), commodities (GOLD, SILVER), and indices (S&P500, NASDAQ).

What are Bulls in trading?

Bulls are traders who are interested in a price increase. A bullish mood in the market indicates an upward trend, meaning buyers dominate, pushing prices higher.

What are Bears in trading?

Bears are traders seeking to drive the current price of an asset down. A bearish mood implies a downtrend, where sellers dominate and push prices lower.

What is a Currency pair?

A currency pair is an asset consisting of two currencies, indicating how much of one currency is needed to buy the other. For example, in GBP/USD, GBP is the base currency and USD is the quote currency. It shows how many US dollars are required to purchase one British pound.

A quote is a price value showing how much of one currency is needed to buy another. For instance, if EUR/USD is 1.11, it means 1 EUR costs 1.11 USD.

What is an Indicator in trading?

An indicator is a mathematical formula or tool used in technical analysis. It appears visually on a chart, simplifying data interpretation by signaling potential price movements or trends.

Volatility measures the strength and speed of an asset’s price movements. High volatility indicates strong and rapid price changes, while low volatility suggests slower, more gradual movements.

What is a Time frame?

A time frame is the period used to group price data on a chart. For example, an M15 time frame means each candlestick represents 15 minutes of price movement.

What is Expiration (expiration time)?

Expiration, or expiration time, is when a trade is finalized and its outcome—profit or loss—is determined. In binary options, it's the moment the trader's forecast is measured against the asset's actual price.

What is a Point in trading?

A point is the smallest possible price change of an asset. In many contexts, this minimum increment is also called a ‘pip’ in the forex market.

What is Support (support level)?

Support is a price level where a downtrend can pause as buying interest (or demand) absorbs selling pressure. It prevents the price from falling lower—at least temporarily.

What is Resistance (resistance level)?

Resistance is a price level where an uptrend can stall as selling interest counters further price increases. It often caps the asset’s upward movement unless strong buying momentum breaks through.

A trend is a persistent directional movement of an asset's price, either upward (bullish) or downward (bearish). Identifying trends is a core part of technical analysis.

What is Sideways movement (flat)?

Sideways or lateral movement, also called a ‘flat,’ occurs when the price moves within a defined range between support and resistance levels, showing neither an upward nor downward trend.

What is Technical Analysis?

Technical analysis is the practice of forecasting future price movement by examining historical market data and charts. It relies on price patterns, indicators, and other tools rather than fundamental factors.

What is Fundamental Analysis?

Fundamental analysis involves evaluating an asset’s intrinsic value by examining economic indicators, financial statements, news events, and broader economic conditions to predict price movements.

What are Risk Free Trades?

Risk-free trades are trades that do not result in financial loss even if your forecast is incorrect. Some binary options brokers provide these as bonuses or incentives, so a trader can learn or test strategies without jeopardizing capital.

What is a Trader's trading diary?

A trader’s trading diary is a record of every trade made, including entry and exit points, strategy details, outcomes, and thoughts during the trade. It’s used to analyze performance, identify mistakes, and refine strategies.

What is a Trader's psychological diary?

A trader’s psychological diary tracks emotional states and reactions to market events. By noting how emotions influence decisions, traders can address behavior that harms profitability and improve discipline.

What is Trading Psychology?

Trading psychology examines how emotions and mental states impact trading decisions. Mastering fear, greed, and other emotions is vital for maintaining consistent, profitable trading practices.

What is Trading discipline?

Trading discipline refers to following a specific trading plan and rules without deviation. Disciplined traders execute only trades aligned with their strategy, helping ensure consistency and profitability.

What is Risk Management?

Risk management is about allocating and protecting capital by controlling the size of trades, setting stop-losses (in forex/CFDs), and ensuring no single trade or sequence of trades can wipe out an account.

What is a Demo account?

A demo account allows you to practice trading with virtual funds, so you can develop skills without risking real money. Several brokers (e.g., Quotex, Pocket Option, INTRADE BAR) offer demo accounts for binary options and other instruments.

Correlation refers to a relationship between assets that respond similarly to market factors. For instance, EUR/USD and XAU/USD (gold) often show parallel price movements, indicating a correlated reaction to economic changes.

What is Consolidation?

Consolidation is a period when the price moves sideways for an extended time, gathering momentum before a significant breakout. It’s often seen before strong upward or downward ‘jumps’ in the market.

What is a Call option (up)?

A Call option is purchased when a trader believes the price will rise. In binary options, you choose ‘up’ if you anticipate higher prices by the option’s expiration.

What is a Put option (down)?

A Put option is purchased when a trader believes the price will fall. In binary options, you choose ‘down’ if you expect lower prices by the option’s expiration.

Binary Options Glossary: Terms for Beginners (2026)

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Glossary of terms for beginner binary options traders (2026)

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

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.

Point

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: