Options trading involves several different variables and it is crucial to understand the meaning and purpose of these variables before anyone can engage in trading. An asset refers to a product that the trader can invest in, assets refer to a wide range of products, there are commodities such as Oil and Gold, currency pairs such as the US dollar against the Euro and stock market trading. A trader can buy an asset at a set price. Set price refers to the barrier to entry, binary options traders have to predicate changes on the set price and if they predicate the set price to increase, they have to apply “Call” option, if they judge to decrease in set price, they have to apply the “Put” option. the price that traders must be willing to pay if they are to enter into a contract. A set price is generally fixed and cannot be negotiated, it is also known as a strike price. In order for traders to make a profit they must be willing to take risk and invest more. While, set prices are important for trade, another key variable is duration or time frame. Duration refers to the time contract ends, the time is decided by the trader, investors can select different ranges starting from hours and extending on to weeks and month.
Source : http://amberoptionsbinarytrading.soup.io/post/429143088/Binary-Options-Variables-And-How-They-Are