Glosari

Ask

An offer price in the market. At this price you can buy the assets.

At-The-Money (ATM)

A unique situation when the option expiration level equals to the strike price, in other words the assets have become neither more nor less expensive. In this case the trader returns his investment in full.

Bid

A bid price in the market. At this price you can sell the assets.

Call Option

A binary option bringing a profit if the asset price increases. A profit is paid to the trader when the expiration level is higher than the strike price.

In-The-Money (ITM)

A profitable deal. On the ExpertOption platform the trader can earn up to 95% per deal.

Out-Of-The-Money

An unprofitable deal. The ExpertOption platform let the trader return up to 45% of his investment if a deal is unprofitable.

Put Option

A binary option bringing a profit if the asset price decreases. A profit is paid to the trader when the strike level is higher than the expiration level.

Bar

A graphic presentation of the asset price changes for a definite period of time which we call a bar chart.

Binary Options

A financial instrument with a determined profit and duration. The powerful instrument which is also available to many traders.

Bonus

A bonus is real money which ExpertOption transfers into your account as extra funds to your deposit.

Bull

The bulls are the traders waiting for the asset price rise. They buy the assets to sell them at a higher price in the future.

Bull Market

The market where we can see the price increase. The bulls are the key players in the bull market. As they suppose this term was taken because the ascending chart reminds the bull horns raised up.

Currency Pair

A trading instrument to trade in the forex market.

Return

On the ExpertOption platform the trader receives up to 45% of the investment amount even in a case of the unprofitable deal. The return amount is set when you buy an option.

Volatility

A strength of the asset price swing for a definite time interval. The more changeable the asset price is the higher volatility is.

Expiration Time

It is the time of closing the option position; or the moment when the user receives a payment in accordance to success of the deal. The expiration time is set when we buy an option and can last 30 seconds or some minutes.

Deposit

A balance of a trader’s account. The trader can use these funds to open a deal.

Diversification

A diversification is the method of reducing risks by simultaneous trading on some different weakly connected assets.

Return

An amount to be paid to the trader in a case of the successful deal. For a call option the rate should increase and for a put option it should decrease. On the ExpertOption platform the trader makes up to 95% of his investment for one successful deal. A return amount is set when you buy an option.

Indicator

The instrument which allows you to determine a chart direction. It is a chart option realizing a definite digital method. The indicators help traders to make a right trading decision.

Corridor

A part of the chart where the asset price changes. The lower bound of the corridor is a support level and the upper bound is a resistance level.

Correction

A reverse of the price direction directly after the trend.

Correlation

A correlation is an interrelation between the movements of two assets. It shows the relationship between the rate changes and is measured from -1 to +1. The correlation coefficient +0.8 shows the rate changes in one direction. For example, let us review the currency pairs EUR/USD and GBP/USD. If one pair increases the second pair will most likely increase too.

Liquidity

The asset liquidity shows how quickly it can be bought or sold. The more deals with this asset the higher its liquidity is.

Support Line

A price level below the current rate. The bulls do not let the asset price decrease below this level. According to the trend strength the support levels can be strong and weak.

Resistance Line

A price level above the current rate. At this level the price is controlled by the bears who do not allow the further rise of the asset.

Trend Line

At the ascending trend the trend line is built on the local minimums and is a support line. At the descending trend it is built on the local maximums and is a resistance line.

Bear

Bears are the investors earning on the price reduction.

Bear Market

The market where we can see the asset price drop. In this market the main trends are downward directed. As they suppose this term was taken as a descending chart reminds the legs of the attacking bear.

Bear Raid

A coordinated attempt of some bears to reduce the asset price by its active sale.

Traders’ Sentiment

A trading instrument showing the direction of the other traders’ deals on ExpertOption platform.