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Trading term

1. Underlying asset type: This is a specific investment group, such as stocks, foreign exchange, commodities and indices.


  E.g:


Stocks (eg Google, British Airways, etc.)


Commodities (for example: gold, Brent crude, etc.)


Index (for example: NASDAQ, FTSE 100, etc.)


Forex (for example: USD / EUR, etc.)


2. Currency trading: The act of buying and selling global currencies. Currency transactions are used by banks and other financial institutions to support international trade. Individual investors can also use foreign exchange for currency speculation.


3. Yield: This is a measure of the annual return on an investment and is usually expressed as a percentage.


4. Volatility: This is a measure of the volatility of the underlying asset prices of options.


5. Market price: The current market price of an object provided by the data supplier.


6. Up and down options: Up and down options are also called fixed returns and digital options. They can be used to trade underlying assets and pay predetermined profits or losses that are known to all parties before the contract is exercised. Click "Learn more".


7. Call / Put: In this type of option, the trader judges that the market price of an object at the option expiration date will be higher or lower than its current market price.


8. Call option: Call option is also called buy option. In this option, the trader believes that the market price of an underlying item will be higher than its current market price at the option expiration date.


9. Put option: Put option is also called sell option. In this option, the trader thinks that the market price of an underlying item will be lower than its current market price at the option expiration date.


10. Out-of-the-money options: The market price of the subject matter that is currently trading or has ended trading is at a loss.


11. In-the-money options: The market price of the current target or closed transaction is profitable.


12. Parity: If the price at the expiry of a call option is exactly the same as the opening or exercise price, the investor will receive a refund of all the funds they initially deposited.


13. Expiry time: The time and date when the selected expiry option expires.


14. Expiry price: The expiry price refers to the price of an object at the expiry date according to the data provided by Baosheng Data Supplier.


This price is used to determine whether a call option is profitable or lossable when it expires.


15. Current price: The last reported real-time price of the underlying asset for a call, unless otherwise stated.


16. Target price: The target price, also known as the market price, is the current asset price provided by the data provider.


17. Trading hours: Each asset has its own trading hours, trading days, and holidays.


18. Investment Amount: The amount of capital that a trader uses to trade options.


19. Foreign exchange options: These up and down options use the currency group traded on the foreign exchange market as the underlying asset, such as EUR / USD, GBP / USD.


20. Buy: This term refers to the purchase of assets by a dealer.


21. Sell: This term refers to the sale of assets by a dealer.


22. Profit: If a "buy" up / down option is recorded at expiration time and its value is higher than the price at the opening or exercise, it is called profit. A "sell" call option is called profit if it is recorded at its expiration time at a value below its opening or exercise price.


23. Loss: If a "buy" up or down option is recorded at the expiration time and its value is lower than the price at the opening or exercise, it is called a loss. If a "sell" call option is expiring.


24. Index: Select a group of stocks that have been combined according to certain criteria.


25. Hedging: This is a trading technology that uses new transactions to offset and reduce the risks of existing transactions due to market fluctuations.


26. Reuters: Reuters Group Limited is a Canadian company headquartered in the United Kingdom. Reuters provides information on international financial markets to newspapers, radio, Internet media and investors around the world. Reuters focuses on providing market data, news and trading products for financial markets.