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Binary Options Glossary

Definitions for the most common terms you'll see on broker websites and trading platforms.

Contract basics

Strike: the reference price at the moment a contract is opened.

Expiry: the moment the contract is settled.

Payout: the percentage of your stake returned on a winning trade, in addition to the stake.

ITM / OTM: in-the-money (winning) and out-of-the-money (losing) at expiry.

Turbo: ultra-short contracts, typically 5 to 60 seconds.

Slippage: the difference between the price you clicked and the price you got.

Re-quote: the platform refuses your price and asks you to confirm a new one.

Spread: the gap between bid and ask price used for execution.

Demo account: a paper-trading account funded with virtual money — every reputable broker offers one.

KYC: Know Your Customer — the identity verification step required before withdrawals.

Bonus lock: a deposit bonus that ties up your balance until a turnover requirement is met. Usually best avoided.

Cold wallet withdrawal: crypto withdrawals processed manually from offline storage, slower but more common at regulated brokers.