A binary option, also referred to as a digital option or a fixed return option, is an option whereby payout is determined at the onset of the contract.
You receive a fixed amount of cash if the option expires in-the-money, regardless of how much the price of the underlying asset moves by. However
you lose the investment when the option expires out-of-the-money.
A call option grants the trader profit whenever the option’s price is higher than it was at the expiration time, i.e. the option expires above the strike
price. If the option expires at precisely the level of the strike price, the initial investment is reimbursed. In the stock market arena, this action is called
Conversely to call options, ‘put options’ grant the trader profit in the event that at the time of expiration the option’s price is lower than it was at the
time of purchase, i.e. the option expires below the strike price. These options are similar to ‘going short’, where the optimal outcome for the investor
is for the price to fall. If the option expires precisely at the level of the strike price, then the initial investment is reimbursed
The price in near real time as reported. The term current price is often used to contrast real-time reporting from most free price information, which is
often delayed by fifteen minutes or more.
The investment amounts are the sums a trader invests in trades. The amounts are not fixed and can vary, according to your trading desires. These
amounts also set the level of pre-determined payout percentages and return of investment, at the time of the option’s expiration time. Meaning, you
control the extent of your losses and profits. The minimum investment is $1 and the maximum investment is $1000.
Strike price is the price of the asset at the time of the purchase of the option.
The expiry level is the level of the underlying asset at the time of expiry of the asset according to Reuters. This is the determining level with regards
to whether the option has expired in-the-money or out-of-the-money. A different expiry level is determined for each underlying asset.
The expiry time reflects the precise time and date a binary option expires. Prior to entering a trade, it is in the hands of the trader to pre-determine
the asset’s expiry time. Trilt enables you to trade on a countless selection of expiration times, ranging from 1 minute to End of the Month..
One of the two major schools of analysis, used to examine macroeconomic data such as national economic health, central bank decisions, political
events, or geologic events. At its core fundamental analysis believes that assets may be mispriced temporarily, but eventually will reach their correct
price, and by examining macroeconomic events one can deduce what that eventual correct price will be.
One of the two major schools of analysis, used to examine historical data to predict future trends in an asset price. At its core technical analysis
believes that all aspects of an asset price are built into the market price, and that trends can be deduced to determine the direction an asset will take.
Products which are sold directly between two parties; distinguished from exchange trading, which occurs via exchanges and brokers set up for the
purpose of managing these transactions. Binary options are available in a limited number of exchanges, but are primarily sold as over-the-counter
The profit realized when a contract expires in-the-money. In binary options the payout is generally between 75% and 81%.