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There are several terms generally used in trading the binary options, among others are:

– Asset

Instead of trading real assets, options trade underlying assets. The assets can be in the form of a security or contract transferrable or tradable in financial market. These assets may include but not limited to stock assets, currency, commodities (e.g. oil and gold), and market indexes (e.g. NASDAQ and FTSE100).

– “Call”

When traders predict that the asset price will be higher upon expiration, they will make the binary call option.

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