Expiration Value Definition

Nadex calculates the Expiration Value for all binary options and spreads using a consistent, transparent process. Both binary and spread contracts will end with the same expiration value if they both have the same underlying market and expiration time. Why? They are both derivatives of the same underlying market and that market can only have one price at a particular time.

Why is that important for you to know? Some binary options broker-dealers are not transparent. You simply have to take their word that they are giving you a fair outcome. As a CFTC-regulated, US-based financial exchange, Nadex plays by strict rules of professionalism and fairness. You can trust our pricing. 

The settlement calculations for futures and currencies are slightly different:

Futures Expiration Value Calculation

  • Take the last 25 trade prices in the underlying market
  • Remove the highest and lowest five prices, leaving the middle 15
  • Average the remaining 15 prices and round to one decimal point past the precision of the underlying market. (For the Wall Street 30 we round to the same precision as the underlying.)

Forex (Currency) Expiration Value Calculation

Unlike futures, which are traded on a central exchange, currencies are traded on a global network. Therefore the settlement calculation is different, but the goal is the same: to get an accurate picture of the market and determine fairly which trades should profit. Nadex uses a proprietary forex data feed, based on a compilation of data from twelve major global banks, to ensure accuracy.

  • Take the last 10 mid-point prices (between the best bid and offer) in the underlying market
  • Remove the highest and lowest three prices
  • Take the average of the remaining four prices and round to one decimal point past the precision of the underlying market

These settlement rules were developed and are maintained with the oversight of the US Commodity Futures Trading Commission, which regulates Nadex and other major financial exchanges.

Nadex Event and Bitcoin Contracts

In addition to futures and currencies, Nadex offers binary options on economic events and Bitcoin. The settlement process for those markets is straightforward:

Economic Events

The expiration value is the figure released by the designated reporting body. For example, the weekly jobless claims number is reported by the US Bureau of Labor Statistics.


The expiration value is the last tick before expiration of the Tera Bitcoin Price Index. The TeraBit Indexsm is trusted worldwide as the most accurate measure of global Bitcoin prices.


Since binary options are all or nothing, if the option moves in the money—above the strike price—by even the minimum amount, you still receive the full $100 payout. For spreads, by contrast, a small increase or decrease in price just before expiration will have a relatively small impact on your final payout.

Nadex offers roughly 10,000 contracts per day, which expire at various times throughout the day. Below is a platform screenshot showing the Nadex US500 binary options and spreads expiring at 2pm ET. At 2pm Nadex will calculate the expiration value of every one using the same weighted average of the last 25 prices of the Indicative Index (last column).

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