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Glossary

The assets used in a specific type of market trading that offers a fixed pay-out for the correct prediction of simple yes/no propositions. For example, a typical binary option would ask if the underlying asset, such as gold, would rise or fall in value and offer up to 85% return for a correct prediction (also known as all-or-nothing, digital and exotic options.)

One of three terms used to describe an option’s current status in terms of its ability to generate profit. At-the-money refers to a situation in which the option’s target price is identical to the underlying asset’s price. If an option expires in this status, the investment amount will be returned.

A tool used in trading binary options whereby a trader must try to predict if the underlying asset will reach a value that is within or out of a specified range of values when the option expires.

Also known as the "stop loss tool," early closure is a feature offered by Boss Capital that allows traders to exit an option prior to the decided expiration time for a reduced return. You can choose this feature after placing a trade.

Refers to the underlying asset’s value once the option expires.

The specific predetermined hour and date when the time allotted for estimating the direction of an assets market value closes.

An option on a High/Low instrument offering a fixed return of up to 85% return if the underlying asset expires at a higher level than the option target price.

A binary options trading instrument in which a trader must predict if the underlying asset will reach a value that is above (Call) or below (Put) the strike price when the option expires.

One of three terms used to describe an option’s current status in terms of its ability to generate profit. "In-the-money" refers to a situation in which the underlying asset’s value will generate profit. For example, when selecting "high" on the high/low instrument, the option will be "in-the-money" if the underlying asset’s price is above the target price.

The amount of capital invested in a single binary option.

The current value of an underlying asset.

An option on a One Touch instrument typically offering a return up to 70% if the underlying asset does not reach the target price during the lifetime of the option.
Note: Should a No Touch option reach the target price at any time during the lifetime of the option then the option automatically and immediately expires "Out of the money".

A binary options trading instrument in which a trader must predict if the underlying asset will touch a specific value prior to expiration or not.

One of three terms used to describe an option’s current status in terms of its ability to generate profit. "out-of-the-money" refers to a situation in which the underlying asset’s value is such that it will not generate profit. For example, when selecting "high" on the high/low instrument, the option will be "out-of-the-money" if the underlying asset’s price is below the target price.

The amount given back to the investor once an option expires "in-the-money". For example, if investing €1,000 in an option that offers an 81% return, the trader will receive €1,810 in returns (€810 in profit) if the option expires "in-the-money".

The target price is also known as the strike price. This term represents the value that an underlying asset must reach in order for an option to end "in-the-money". For example, when using the "one touch" instrument and selecting "touch", the option will end "in-the-money" if the underlying asset touches the target price.

The asset (see underlying asset types) on which Boss Capital is writing an option.

An ownable, and thus trade-able, entity that can be categorized in one of the following: Stocks, Commodities, Indices and Currencies. For full details of the assets available on Boss Capital, please see the Asset Index page.