Pocket Option Glossary — Trading & Binary Options Terms
62 terms, defined plainly. Each entry has its own page with extended explanation, examples, and links to in-depth guides.
Open visual cluster map or browse all terms alphabetically below.
Basics
At-the-Money (ATM)At expiry, when the market price equals the strike exactly…Binary OptionA binary option is a financial derivative with two possible outcomes: a fixed payout if a condition (e…Call OptionIn binary trading, a 'call' (or 'up' / 'higher') predicts that price will be above the entry price at expiry…ExpiryThe time at which a binary option contract settles…In-the-Money (ITM)A binary option closes in-the-money if the price condition (above strike for a call, below for a put) is met at expiry…OTC TradingOTC (over-the-counter) on Pocket Option refers to synthetic markets generated by the platform's pricing engine, availabl…Out-of-the-Money (OTM)A binary option closes out-of-the-money if the price condition is not met at expiry…PayoutThe percentage return paid on a winning binary option, typically 70–95% depending on asset and platform…Put OptionIn binary trading, a 'put' (or 'down' / 'lower') predicts that price will be below the entry price at expiry…Strike PriceThe price at which a binary option is opened — also called the entry price…
Indicators
ADX (Average Directional Index)Measures trend strength on a 0–100 scale…ATR (Average True Range)Measures market volatility over N periods (default 14)…Bollinger BandsThree bands plotted around price: a 20-period moving average and two outer bands at ±2 standard deviations…Fibonacci RetracementHorizontal levels drawn at 23…Ichimoku CloudGoichi Hosoda's 'one-glance equilibrium chart'…MACDMoving Average Convergence Divergence…Moving AverageThe arithmetic mean (SMA) or exponentially weighted mean (EMA) of price over N periods…Parabolic SARJ…RSI (Relative Strength Index)RSI measures the momentum of price changes on a 0–100 scale…Stochastic OscillatorCompares current close to its high-low range over N periods (default 14)…VWAP (Volume-Weighted Average Price)Average price weighted by trading volume, calculated session-by-session…
Patterns
BreakoutPrice moves above resistance or below support with sufficient momentum…DivergenceWhen price makes a new high (or low) but an oscillator (RSI, MACD, Stochastic) does not…Double TopTwo roughly equal highs followed by a break below the support between them…Engulfing PatternA two-candle reversal pattern where the second candle's body completely engulfs the first…Head and ShouldersA three-peak reversal pattern: left shoulder, higher head, right shoulder roughly at left-shoulder height, with a 'neckl…Pin BarA candlestick with a long wick and small body, signaling rejection of a price level…ResistanceA price level at which selling pressure has historically prevented further upside…ReversalA change in the direction of the prevailing trend…SupportA price level at which buying pressure has historically prevented further decline…TrendlineA line connecting at least three swing highs (downtrend) or lows (uptrend)…
Risk
AML (Anti-Money Laundering)Regulations preventing the use of financial platforms for illicit funds…DrawdownThe decline from a peak in account equity to a subsequent trough…KYC (Know Your Customer)Identity verification required by financial regulators…LeverageBorrowed capital that increases the size of a position relative to deposited margin…MarginIn CFD trading, the collateral required to hold a leveraged position…MartingaleA position-sizing strategy that doubles stake after each loss to recover losses with a single win…Position SizeThe amount staked per trade…Risk ManagementRules for limiting losses and preserving capital…Stop LossA pre-defined exit point that closes a losing position before the loss exceeds a planned amount…Take ProfitA pre-defined exit point that closes a winning position once a target is reached…
Payments
BonusPromotional credit given on first deposit or via promo code…ChargebackA reversal of a card transaction initiated by the cardholder via their bank…CommissionAn explicit fee per trade or per turnover unit…DepositFunding your trading account…SpreadThe difference between bid and ask price — the implicit cost of opening a trade…Wagering RequirementTrading volume needed before deposit-bonus funds (and gains made with them) become withdrawable…WithdrawalMoving funds out of your trading account…
Account
Demo AccountA simulated trading account with virtual funds (Pocket Option: $50,000)…Live AccountA real-money trading account…Social TradingCopying or following the trades of other users automatically or manually…VIP AccountA premium account tier on Pocket Option offering higher payouts, faster withdrawals, dedicated support, and exclusive pr…
Mechanics
CorrelationThe degree to which two assets move together…LiquidityHow easily an asset can be bought or sold without significant price impact…News TradingTaking positions around scheduled economic data releases (NFP, FOMC, CPI)…SlippageThe difference between requested and executed price…Trading SessionEach major financial center has a session: Sydney, Tokyo, London, New York…VolatilityThe magnitude of price changes over time, usually measured as standard deviation or ATR…
Misc
AffiliateA partner who refers new users to Pocket Option and receives a share of revenue…BacktestRunning a trading strategy on historical data to estimate its performance…Forward TestRunning a strategy on live (real-time) data with no trades placed, to validate performance after backtest…Trading SignalA buy/sell recommendation derived from analysis or an automated system…