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Glossary

Trader

A person who opens trades on the market aiming to make a profit. Anyone can become a trader, all you need is to execute one trade.

Option

This is one of the derivative financial instruments, i.e., the contract for fulfillment of a certain condition,
but not for actual asset purchase.

Currency option

A binary option which is based on the currency pair. Trading with this instrument involves forecasting changes in the cost of one currency relative to the another.

Initial price or Strike price

The price of the chosen asset at the trade opening (option purchase) time, which should either rise or fall during the specified trade time.

Price rise or Call Option

A trader should open a bet on a price rise, if he or she believes that the currency pair will become more expensive. This type of trade is called a Call Option. If you are sure that the price will go up, then click on the "Up" button.

Trade amount

This is the amount on which profit depends. In fact, this is the trade price, the option price that you can monitor on your own. If the forecast is correct, the trader receives 80% of the trade amount.
The minimum trade amount on OLYMP TRADE is $1 / €1.

Expiration or Option execution

The trade closure, i.e,. the time when an option terminates after the end of previously specified time period.

Trade cancellation

This feature gives you a hedging instrument to protect yourself from negative trade result. If you realize that your forecast is incorrect and the chart is moving in the wrong direction after a contract has been executed, you can cancel your trade and avoid the total loss of your investment.

Deposit

This is the balance of your trading account, i.e., the amount of money on your account when you start trading.

Trend

A stable price direction on the market for a long period of time. A steady rise or fall that can be noted by ignoring slight fluctuations.

Diversification

The risk reduction method while trading options, which involves the purchase of various assets not connected with one another. "You win some, you lose some."

Commodity option

A binary option which is based on a commodity. Usually it is oil, precious metal or a food industry product.

Index option

A binary option which is based on stock indices, such as Dow Jones, RTS, S & P 500, DAX and others.

Trading sessions

The operating hours the largest global stock exchanges grouped by economic region. There are 4 main trade sessions: Asian, European, Australian, and American.

Broker

An intermediary between large commercial organizations and retail traders on the financial markets. OLYMP TRADE provides its traders with access to the binary options market.

Binary option

The simplest and the most transparent financial instrument. This is an option that, depending on whether the specified condition is met in the specified time, either produces an income or produces nothing.

Point (pips)

This is the minimum change in the exchange rate for a currency pair. All currency pairs are quoted to the fourth or fifth decimal place. The exceptions are USDJPY and USDRUB, which are quoted to the third decimal place.

Underlying asset

An asset on which you bid to change the price. These assets can be currency pairs or commodities (oil, gold). Beginners usually prefer to start with currency pairs.

Market price

The latest announced price of an asset at that moment.

Price decline or put option

A trader should open a down trade, if he or she thinks that the price for the selected asset will fall. This type of trade is called a Put Option. If you think that the asset is declining, press the "Down" button.

Trade time

This is the time interval, after which a trade is completed. If you bought a call-option, then after expiry the asset price should be higher, if you bought a put-option, then the price should be lower.

Option execution level or Expiration level

The price for the selected asset when the binary option expires. This is the result that has to be predicted by a trader. For trading on binary options, the exact price rate is not important, the trader should predict whether the price turned out to be higher or lower than the asset price when the trade opened.

Profit

This is your profit from a trade. You can see how your potential profit changes as a function of your investment even before the contract is executed. The binary options trading profit is 80%. Thanks to the options, you always know how much you can earn.

Market entry threshold

The minimum required sum on the account that allows a trader to start trading on the market. The minimum balance on OLYMPTRADE is just $10 / €10.

Trading hours

The time when one can buy and sell a particular asset.

Hedging

Insurance. OLYMP TRADE helps you to protect yourself from financial losses by the trade cancellation option.

Stock option

A binary option which is based on stock or securities of the most famous and influential companies.

Volatility

This is a financial indicator that measures the asset price variability. The higher the volatility, the more rapidly the price of a particular asset changes. This indicates that traders have a high interest in the asset. When volatility is low, the price remains the same for a long period of time or it may change slightly.