Glossary
Binary Options
Are options that pay out a fixed amount if the underlying asset on which the option is based moves in the direction of the trade at expiry.
Call Option
An option that provides the holder with a fixed profit when the underlying asset is higher at expiry than the price level it was purchased at.
Put Option
An option that provides the holder with a fixed profit when the underlying asset is lower at expiry than the price level it was purchased at.
Current Price
The last price according to Thomson Reuters real-time data unless otherwise stated.
Expiry Price
The price of the underlying asset at the time of expiry of the asset according to Thomson Reuters real time data. The expiry price determines whether the option has expired in-the-money or out-of-the-money.
Expiry Time
The time and date at which an option expires.
In-the-money
• A binary option Call Option is In-the-money when the Expiry Price is higher than the option buying price at the Expiry time.
• A binary option Put Option is In-the-money. when the Expiry Price is lower than the option buying price at the Expiry time.
• A binary option Put Option is In-the-money. when the Expiry Price is lower than the option buying price at the Expiry time.
Out-the-money
• A binary option Call Option is out-of-the-money when the Expiry Level is lower than the option buying price at the Expiry time.
• A binary option Put Option is out-of-the-money when the Expiry Level is higher than the option buying price at the Expiry time.
• A binary option Put Option is out-of-the-money when the Expiry Level is higher than the option buying price at the Expiry time.
At-the-money
• If the option Expiry level is equivalent to the option buying price than the investment amount is fully returned to the investor. (No profit and no loss).
Payout
Tradesmarter ‘Above or Below’ offers you a fixed-return payout of generally 70%-85% when the option expires in-the-money, and up to a 10% return if the option expires out-of-the-money. The option cannot be sold before its expiration.
Investment Amount
The amount invested in a specific option.
Instrument
A stock, a commodity, a currency pair or an index.
Strike Price
div style=”color: #010101; font-size: 12px; padding-bottom: 20px;”>The specific price (and time) at which an asset was traded. This is within the framework of one hour, except the last 10 minutes of the hour.
