CORN
BINARY OPTION EXAMPLE
You read that the USDA forecasts grain production for the next 12 months to be significantly ahead of last year. You believe this positive sentiment will boost the futures price of corn.
In this example the underlying corn futures market is trading around 580 and you opt to trade a Binary Option.
CHOOSE MARKET
You believe the price of corn is set to rise, following the positive forecast figure.
You choose:
Corn (Mar) > 583.0 (2:15PM)
COMPLETE TICKET
You Buy as you think corn futures will be above 583.0 at 2:15pm.
You select 12 contracts at the offer price of 42.50. Each contract is worth $1 per point.
Your Maximum Profit and Loss are displayed automatically.
The most you can make is $690; the most you can lose is $510*.
MONITOR TRADE
Based on Nadex's calculated expiration value for the corn future at 2:15pm, your Binary Option will settle at:
100 if this value is above 583.0
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Profit
At 2:15pm, the calculated expiration value for the corn future is above 583.0.
Your trade settles at 100.
The difference between your opening price (42.50) and the settlement price (100) is 57.50.
Multiply 57.50 by the number of contracts (12) and the contract value per point ($1) to calculate your gross profit.
57.50 x 12 x $1 = $690*
*Fees apply
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Loss
At 2:15pm, the calculated expiration value for the corn future is below 583.0.
Your trade settles at 0.
The difference between your opening price (42.50) and the settlement price (0) is 42.50.
Multiply 42.50 by the number of contracts (12) and the contract value per point ($1) to calculate your gross loss.
42.50 x 12 x $1 = $510*
*Fees apply
More Examples
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Commodities
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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.