BINARY OPTIONS GLOSSARY

Terminology
Forex - currency market where buyers and sellers carry out currency transactions.

Bearish market - market with the down-directed tendency.

Bears - traders operating for a currency rate fall.

Broker - organization rendering lending services and traders support.

Bulls - traders relying on currency rate upturn.

Bulls market - market with up-directed rate tendency.

Channel - a certain range of currency rate fluctuations.

Chart, graph, diagram - graphic display of price change and another information through time.

Cross-rate - rate showing two currencies ratio without the US dollar.

Currency pair - text record of currency quotation.

Currency quotation - it has two types:

Direct quotation - number of currency units for 1 US dollar (dollar precedes the currency pair).

Reverse quotation - number of currency units for 1 Euro, British pound or Swiss franc( Euro, British
pound and the Swiss franc precede the currency pair).

Currency rate - price of monetary unit of one country expressed in monetary units of another one. Monetary price
unit of one country expressed in monetary units of another one.

Dealing center - company lending an access to the currency market by means of forming a pool of clients
applications for opening positions.

Dealing - Non-cash trading.

Deposit - money put into account for further transactions.

Diversification - strategy laid out for reducing the risks allocating the capital investments between different
currency pairs. Unfavorable situation development with one of currency pairs can be compensated by successful
deals in another currency pair.

Down-directed trend - when each time the lower rate value is fixed. The trend line is shaped by means of linking
the upper points of rate movement waves.

Figure - price changing by 100 points.

For example, the price change of EUR/USD from 1.770 to 1.870 - it is a figure growth.

Fundamental analysis - market analysis area where the forecasts are based on events of the financial world. As
the main criteria are usually considered the economic situation in the currency's country, monetary policy and other
"fundamental" aspects.
Hedging - operation with the same financial instruments partly covering the loss risks while working with other
financial instruments. For instance, trading with dollar futures the risks can be hedged by option contracts for
EURUSD, and vice versa.

Interbank rates - currency rates quoted by large international banks to the same other banks. The difference
between the rates of buying and selling the currency can be about 0.03-0.08%.

Intraday trading - trading oriented to profit making within one day.

Leverage - rate of credit given to a trader by broker.

Margin trading - currency trading on security of a pledge (margin). With margin trading a reverse trade execution
is obligatory.

Market-makers - large banks and financial companies setting the current level of currency rate or interest rates at
the expense of huge transactions share in the whole market volume.

Order - any trade on a trading account.

Point or pips - minimal price changing which is different for all currency pairs.

Quotation currency (quoted currency) - currency written at the right in each currency pair (second).

Range - a distance between support and resistance levels.

Reference currency - currency which is put first in the currency pair designation.

Resistance level - upper channel line.

Spread - difference usually expressed in points between the prices of seller and buyer. Low spread is beneficial for
a trader.

Support level - lower channel line.

Swap - amount charged or accrued for each opened trade after midnight.

Technical analysis - area of market analysis implying that market has a memory and the rate's future movement
will be mostly impacted by peculiarities of its previous behaviour.

Trader - a person trading with currencies on Forex market with the purpose of deriving profit.

Transaction - operation of opening/closing a position.

Trend lines - strict lines drawn at the chart coming through the bottoms in the upside tendency and through the
peaks - with the downside one. These lines determine the current trend. The trend line break through usually
signals about the trend changing.

Trend - the current general tendency of price movement.

Up-directed trend - when each time the rate value advances compared to the previous one within the wave. The
lower wave points are linked by a straight line - trend line.