SILVER
BINARY OPTION EXAMPLE
China’s National Bureau of Statistics is due to release the country’s latest industrial production figures, and you expect the data to fall short of expectations.
In this example the underlying silver futures market is at around 32.15.
CHOOSE MARKET
You believe the price of silver will fall, following the announcement of the latest Chinese economic data.
You decide to sell the following contract:
Silver (Dec) > 3210 (1:25PM)
COMPLETE TICKET
You opt to Sell because you think the silver future will be below 3210 at 1:25pm.
You select 10 contracts at the bid price of 64.00. Each contract is worth $1 per point.
Your Maximum Profit and Maximum Loss are displayed automatically.
The most you can make is $640; the most you can lose is $360*.
MONITOR TRADE
Your position is now open.
Based on Nadex's calculated expiration value at 1:25pm, it will settle at either:
100 if the value for the silver future is above 3210.0
0 if the value for the silver future is at or below 3210.0
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Profit
At 1:25pm, Nadex's calculated expiration value for silver is below 3210.
Your trade settles at 0.
The difference between your opening price (64) and the settlement price (0) is 64.
Multiply 64 by the number of contracts (10) and the contract value per point ($1) to calculate your gross profit.
64 x 10 x $1 = $640*
*Fees apply
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Loss
At 1:25pm, Nadex's calculated expiration value for silver is above 3210.
Your trade settles at 100.
The difference between your opening price (64) and the settlement price (100) is 36.
Multiply 36 by the number of contracts (10) and the contract value per point ($1) to calculate your gross loss.
36 x 10 x $1 = $360*
*Fees apply
More Examples
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Commodities
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Stock Indices
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.