Contract Details: Forex Binaries

A Binary Option is a special type of option that settles at either zero or 100.

Contract sizes are as follows:

1. A range of possible Binary Options will be offered on the daily performance/official settlement of each market. The price quotation for each Binary is expressed in points. If the outcome described by the Binary Option occurs, that Binary Option will settle at 100. If it does not occur, the Binary Option will settle at zero.

   Weekly quotations are based on the settlement level of the market concerned on the last trading day of the week in question.

   Spot FX Binary Options are offered on the following currency pairs: EUR/USD, USD/JPY, GBP/USD, USD/CHF, EUR/GBP and AUD/USD. FX Ladders are offered on EUR/USD, GBP/USD, AUD/USD, USD/CHF and USD/JPY. Quotations are based on the achievement of specified price changes in the spot rate concerned at 15.00 (EST) each day. The level used for settlement will be the first print recorded by Bloomberg (E&OE) at 15.00 (EST) for the relevant currency pair. FX OneTouch Binaries are offered on GBP/USD and EUR/USD. FX OneTouch levels are measured by reference to trades recorded by Bloomberg between the start of the month and 11.00 (EST) on the last business day of the month (E&OE).

   Gold and Silver Binary Options are based on the achievement of specified daily price changes in the nearest liquid month of the relevant futures contract on the New York Mercantile Exchange. This change is measured by each day's official settlement level, available after each market closes. The markets normally close at 13.30 (Gold) and 13.25 (Silver) (EST).

2. Our spread on Binary Options will vary according to the level of the price quotation and the time to expiry.
   

3. If the event described occurs, the Binary Option will settle with a value of 100. In all other events the Binary Option will settle at zero. For the purpose of Binary Options all spot rates will be rounded to the nearest pip. If a market settles exactly on a Binary Option barrier after such rounding, that market will be taken to have settled above the barrier for the purposes of contract settlement.

   FX OneTouch Binary Options (on GBP/USD and EUR/USD) will settle at 100 if the underlying market touches or goes through the relevant barrier at any time up to and including 11.00 (EST) on the last business day of the month.

4. For Spot FX Binary Options and FX Ladders, dealing runs from 16.00 (EST) of the previous trading day until 14.55 on the day of expiry. For Daily Gold Binary Options, dealing runs from 16.00 (EST) of the previous trading day until 13.25 on the day of expiry (except 08.00 to 08.20). For Daily Silver Binary Options, dealing runs from 16.00 (London time) of the previous trading day until 13.20 on the day of expiry (except 08.00 to 08.25).

5. The margin requirement for buying a Binary Option is equal to the contract value (which is the opening price multiplied by the contract size).

   The margin requirement for selling a Binary Option is equal to (100 minus the opening price) multiplied by the contract size.

6. When you enter a Forex Binary Option your profit or loss will be realized in the second-named currency (i.e. for EUR/USD it will be realized in US dollars), and will be booked to your account in the second-named currency. As a default, we will automatically, and on a daily basis, convert any positive or negative balance on your account in a currency other than your base currency to your base currency. You may change this default at any time by calling us or via our PureDeal platform.

Related Info

Forex Spreads

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