US Tech 100
Binary Option Example
A few NASDAQ-100 companies are reporting today. You anticipate this could have an effect on the overall value of the index.
The CME® E-mini NASDAQ 100 Index® Future is the basis for our US Tech 100 contracts, and in this example is trading around 2218.
Choose market
You think the index will rise, in anticipation of better-than-expected company results.
You choose:
US Tech 100 (Mar) > 2224 (2PM)
Complete Ticket
You opt to Buy as you think the index will be above 2224 at 2pm.
You select 20 contracts at the offer price of 44.00. Each contract is worth $1 per point.
Your Maximum Profit and Loss are displayed automatically.
The most you can make is $1120; the most you can lose is $880*.
Monitor Trade
Based on Nadex’s calculated expiration value for the index future at 2pm, your Binary Option will settle at:
100 if this value is above 2224
0 if this value is at or below 2224
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Profit
At 2pm, Nadex’s calculated expiration value for US Tech 100 is above 2224.
Your trade settles at 100.
The difference between your opening price (44) and the settlement price (100) is 56.
Multiply 56 by the number of contracts (20) and the contract value per point ($1) to calculate your gross profit.
56 x 20 x $1 = $1120*
*Fees apply
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Loss
At 2pm, Nadex’s calculated expiration value for US Tech 100 is below 2224.
Your trade settles at 0.
The difference between your opening price (44) and the settlement price (0) is 44.
Multiply 44 by the number of contracts (20) and the contract value per point ($1) to calculate your gross loss.
44 x 20 x $1 = $880*
*Fees apply
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Step-by-step
An in-depth guide to placing your first Binary Option trade, from the first step to the last.