COPPER
BINARY OPTION EXAMPLE
News has filtered through of anticipated supply problems at large copper mines in Chile, and you think this could lead to an increase in the price of copper over the next few days.
In this example the underlying copper future is trading around 3.373.
CHOOSE MARKET
You believe the copper future will rise, in anticipation of supply uncertainty.
You choose:
Copper (Dec) > 347.5 (12PM)
This contract is due to expire at the end of the week.
COMPLETE TICKET
You Buy because you think the copper future will be above 347.5 at 12pm on Friday.
You select 20 contracts at the offer price of 58.00. Each contract is worth $1 per point.
Your Maximum Profit and Maximum Loss are displayed automatically.
The most you can make is $840; the most you can lose is $1160*.
MONITOR TRADE
Based on Nadex's calculated expiration value for the copper future at 12pm on Friday, your Binary Option will settle at either:
100 if the value for the copper future is above 347.5
0 if the value for the copper future is at or below 347.5
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Profit
At 12pm on Friday, Nadex's calculated expiration value for copper is above 347.5.
Your trade settles at 100.
The difference between your opening price (58) and the settlement price (100) is 42.
Multiply 42 by the number of contracts (20) and the contract value per point ($1) to calculate your gross profit.
42 x 20 x $1 = $840*
*Fees apply
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Loss
At 12pm on Friday, Nadex's calculated expiration value for copper is below 347.5.
Your trade settles at 0.
The difference between your opening price (58) and the settlement price (0) is 58.
Multiply 58 by the number of contracts (20) and the contract value per point ($1) to calculate your gross loss.
58 x 20 x $1 = $1160*
*Fees apply
More Examples
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Commodities
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Step-by-step
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