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Trading Concepts
Understanding core trading concepts is essential for anyone involved in binary options trading.
Call and Put Options
A Call option is placed when you believe the price will rise. A Put option is placed when you believe the price will fall.
Key Terminology
- In the Money (ITM): A trade that finishes in profit
- Out of the Money (OTM): A trade that finishes in loss
- Strike Price: The price level at the time of trade entry
- Payout: The percentage return on a winning trade
- Expiry: The time at which the option expires
Technical vs. Fundamental Analysis
Technical analysis involves studying price charts and patterns. Fundamental analysis focuses on economic data, news events, and financial reports. Many successful traders combine both.