SOYBEANS
binary option example
An ongoing European debt crisis is strengthening USD as a safe haven currency alternative, and you've observed that when the dollar price goes up the price of soybeans generally goes down.
In this example the underlying soybeans futures market is trading around 1090 and you opt to trade a Binary Option.
CHOOSE MARKET
You believe the price of soybeans will fall, on the back of a strengthening dollar.
You choose:
Soybeans (Jan) > 1094.0 (2:15PM)
COMPLETE TICKET
You opt to Sell as you think soybean futures will be below 1094.0 at 2:15pm.
You select 15 contracts at the bid price of 63.50. Each contract is worth $1 per point.
Your Maximum Profit and Loss are displayed automatically.
The most you can make is $952.50; the most you can lose is $547.50*.
MONITOR TRADE
Based on Nadex's calculated expiration value for the soybeans future at 2:15pm, your Binary Option will settle at:
100 if this value is above 1094.0
0 if this value is at or below 1094.0
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Profit
At 2:15pm, Nadex's calculated expiration value for the soybeans future is below 1094.0.
Your trade settles at 0.
The difference between your opening price (63.50) and the settlement price (0) is 63.50.
Multiply 63.50 by the number of contracts (15) and the contract value per point ($1) to calculate your gross profit.
63.50 x 15 x $1 = $952.50*
*Fees apply
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Loss
At 2:15pm, Nadex's calculated expiration value for the soybeans future is above 1094.0.
Your trade settles at 100.
The difference between your opening price (63.50) and the settlement price (100) is 36.50.
Multiply 36.50 by the number of contracts (15) and the contract value per point ($1) to calculate your gross profit.
36.50 x 15 x $1 = $547.50*
*Fees apply
More Examples
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Commodities
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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.