Binary Option Example
The Nonfarm Payrolls figure rose by 120,000 the previous month, and you are confident the upward trend will continue.
You expect another strong showing from the Nonfarm Payrolls this month, based on the current trend.
Nonfarm Payrolls >= 150000
You opt to Buy as you think the figure will be above 150,000 at 8:30am on Friday.
You select 3 contracts at the offer price of 55.00. Each contract is worth $1 per point.
Your Maximum Profit and Loss are displayed automatically.
The most you can make is $135; the most you can lose is $165*.
When the official Nonfarm Payrolls figure is released at 8:30am on Friday, your Binary Option will settle at:
100 if the figure is at or above 150,000
0 if the figure is below 150,000
At 8:30am, the Bureau of Labor Statistics' official nonfarms figure is above 150,000.
Your trade settles at 100.
The difference between your opening price (55) and the settlement price (100) is 45.
Multiply 45 by the number of contracts (3) and the contract value per point ($1) to calculate your gross profit.
45 x 3 x $1 = $135*
At 8:30am, the Bureau of Labor Statistics' official nonfarms figure is below 150,000.
Your trade settles at 0.
The difference between your opening price (55) and the settlement price (0) is 55.
Multiply 55 by the number of contracts (3) and the contract value per point ($1) to calculate your gross loss.
55 x 3 x $1 = $165*
Trade the financial markets with strictly limited risk and low collateral.
An in-depth guide to placing your first Binary Option trade, from the first step to the last.