CRUDE OIL

BINARY OPTION EXAMPLE

The latest U.S. industrial production figures are significantly lower than analyst expectations. You believe this will have a negative impact on demand for crude oil, causing an immediate drop in its price.

In this example the underlying crude oil future is trading around $99.50.

Choose market

You think the price of oil will fall following the disappointing economic data.

You choose:

Crude Oil (Jan) > 100.50 (2:30PM)

Crude Oil Trading

Complete Ticket

You opt to Sell as you think the crude oil future will be below 100.50 at 2:30pm.

You select 5 contracts at the bid price of 38.00. Each contract is worth $1 per point.

Your Maximum Profit and Loss are displayed automatically.

The most you can make is $190; the most you can lose is $310*.

Monitor trade

Based on Nadex’s calculated expiration value for the crude oil future at 2:30pm, your Binary Option will settle at:

100 if this value is above 100.50
0 if is at or below 100.50

  1. Profit

    At 2:30pm, Nadex's calculated expiration value for crude oil is below 100.50.

    Your trade settles at 0.

    The difference between your opening price (38) and the settlement price (0) is 38.

    Multiply 38 by the number of contracts (5) and the contract value per point ($1) to calculate your gross profit.

    38 x 5 x $1 = $190*

    *Fees apply


  2. Loss

    At 2:30pm, Nadex's calculated expiration value for crude oil is above 100.50.

    Your trade settles at 100.

    The difference between your opening price (38) and the settlement price (100) is 62.

    Multiply 62 by the number of contracts (5) and the contract value per point ($1) to calculate your gross loss.

    62 x 5 x $1 = $310*

    *Fees apply

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