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Glossary

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An offer price in the market. At this price, you can buy the asset.

Bull

The bulls are the traders waiting for the asset price rise. They buy the assets to sell them at a higher price in the future.

Bull Market

The market displaying price increases is referred to as a bull market. Bulls are the central figures in such markets, a term likely derived from the ascending price chart resembling the upward-raised horns of a bull.

Return

On the ExpertOption platform traders receive up to 45% of the investment amount even in the case of an unprofitable deal. The return amount is set when you buy an asset.

Volatility

A strength of the asset price swing for a definite time interval. The more changeable the asset price is, the higher the volatility.

Deposit

The balance of a trader’s account. The trader can use these funds to open deals.

Diversification

Diversification is the method of reducing risks by simultaneous trading on some different weakly connected assets.

Indicator

An instrument that aids in chart analysis to ascertain its direction. This chart option employs specific digital methods. Indicators assist traders in making accurate trading decisions.

Bid

A bid price in the market. At this price, you can sell the assets.

Corridor

A segment of the chart illustrating shifts in asset prices. The lower boundary of this corridor signifies a support level, while the upper boundary indicates a resistance level.

Correction

A reversal in price direction that occurs immediately after a trend.

Correlation

A correlation is an interrelation between the movements of two assets. It shows the relationship between the rate changes and is measured from -1 to +1. The correlation coefficient +0.8 shows the rate changes in one direction. For example, let us review the currency pairs EUR/USD and GBP/USD. If one pair increases the second pair will most likely increase too.

Liquidity

The asset liquidity shows how quickly it can be bought or sold. The more deals with this asset the higher its liquidity is.

Support Line

A price level below the current rate. The bulls do not let the asset price decrease below this level. According to the trend strength, the support levels can be strong and weak.

Resistance Line

A price level above the current rate. At this level the price is controlled by the bears who do not allow the asset to rise further.

Trend Line

In an ascending trend, the trend line is constructed using local lows and functions as a support line. Conversely, in a descending trend, it's established based on local highs and serves as a resistance line.

Bear

Bears are the investors earning from price decreases.

Bear Market

A market characterized by a decline in asset prices. In this market, the predominant trends are downward. This term is thought to be derived from the descending chart, which resembles the legs of an attacking bear.

Bear Raid

A synchronized effort by certain traders (bears) to decrease the asset's price through active selling.

Traders’ Sentiment

A trading instrument showing the direction of the other traders’ deals on the ExpertOption platform.

Bar

A visual representation of asset price fluctuations over a specific time frame, commonly referred to as a bar chart.

Bonus

A bonus refers to actual funds that ExpertOption adds to your account as extra money alongside your deposit.
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