Gold
Binary Option Example
It’s the first Friday of the month and you believe the non-farm payrolls will miss forecasts and the USD may take a hit.
You think this could have a knock-on effect on gold. In this example the underlying gold futures market is trading around 1788.
Choose Market
You think investors will channel funds away from USD and into gold, a metal usually seen as a safe-haven asset.
You choose:
Gold (Dec) > 1794.0 (1:30PM).
Complete Ticket
You opt to Buy as you think the gold futures contract will be above 1794.0 at 1:30pm.
You select 10 contracts at the offer price of 21.00. Each contract is worth $1 per point.
Your Maximum Profit and Maximum Loss are displayed automatically.
The most you can make is $790; the most you can lose is $210.*
Monitor Trade
Based on Nadex's calculated expiration value for the gold future at 1:30pm, your Binary Option will settle at:
100 if this value is above 1794.0
0 if this is value is at or below 1794.0
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Profit
At 1:30pm, Nadex’s calculated expiration value for gold is above 1794.0.
Your trade settles at 100.
The difference between your opening price (21) and the settlement price (100) is 79.
Multiply 79 by the number of contracts (10) and the contract value per point ($1) to calculate your gross profit.79 x 10 x $1 = $790*
*Fees apply
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Loss
At 1:30pm, Nadex’s calculated expiration value for the gold future is below 1794.0.
Your Binary Option settles at 0.The difference between your opening price (21) and the settlement price (0) is 21.
Multiply 21 by the number of contracts (10) and the contract value per point ($1) to calculate your gross loss.21 x 10 x $1 = $210*
*Fees apply
More Examples
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Commodities
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Commodities
Binary Options
Trade the financial markets with strictly limited risk and low collateral.
Step-by-step
An in-depth guide to placing your first Binary Option trade, from the first step to the last.