Germany 30 binary options are cash-settled options with an all-or-nothing payout that allow traders to take a position on the expected direction of the DAX® Futures contracts. By trading these binary options, traders can speculate on where the DAX Futures will be at 11:30am ET on the designated expiration date.
Contract Specifications
Options Type
Binary Option - A European-style option contract that is cash settled on the expiration date with an all-or-nothing payout.
Underlying
The underlying is the the price of the DAX Futures contracts (in Euros) traded on the Eurex® exchange (Eurex)1.
Price Quotation
U.S. dollars and cents.
Minimum Tick Size
$0.25 per contract. All prices must be entered in increments of $0.25, starting from the minimum payout value of $0 to the maximum payout value of $100.
Trading Hours
Regular session trading hours are 8:00am to 5:00pm ET, Monday through Thursday and 8:00am to 3:00pm ET on Friday. Evening session trading hours are from 6:00pm to 9:00pm ET Monday through Thursday. On the contract's specified last trading day, Germany 30 binary contracts close at 11:30am ET. For additional information, please refer to the Trading Hours Table.
Trading Months
The futures contract months that will be used for the underlying will be taken from four Eurex DAX Index Futures Contract delivery months (DFC Delivery Month): March, June, September, or December. Please refer to the Settlement Source Table for a schedule of the dates associated with the specific DFC Delivery Months that will be used as the underlying.
Last Trading Day
Trading in the contract will stop as of the date listed in the contract's name and in the "At a Glance" table (right).
Expiration Date
The date on which the expiration value for the contract is calculated or released. For Germany 30 binary options, the expiration date is usually the same day as the last trading day, which is listed in the "At a Glance" table (right).
Settlement Date and Time
The date on which the final settlement value is determined and cash payouts are made to the appropriate member accounts. Contracts are settled on the specified settlement date, which is listed in the "At a Glance" table (right). Settlement generally occurs within an hour of a contract's closing time (the closing time is displayed in the name of the contract). For Germany 30 binary options, the settlement date is usually the same as the expiration date.
Expiration Value
The expiration value for Germany 30 binaries is calculated by HedgeStreet by using a proprietary algorithm that takes a sampling of data points obtained from the relevant DAX Futures contract currently trading on Eurex. HedgeStreet calculates the expiration value by taking the last 25 trade prices in the designated Eurex DAX Futures contract just prior to the close of trading in the designated HedgeStreet binary option contract and removes the highest 5 and the lowest 5 trade prices, using the remaining 15 Eurex DAX Futures trade prices to calculate the expiration value. The calculation used is a simple average of all 15 DAX Futures contract trade prices.
Settlement Value
The settlement value, a cash payout, is either $0 or $100.
Speculative Position Limits
The aggregate position limit is 2,500 contracts.
Strike Price Intervals
Daily duration: 20 pt increments for all strike prices; Weekly duration: 50 pt increments for all strike prices.
Example
11:30AM Dec Germany 30 > 4800.00 (19 Dec 08)
This binary options contract allows traders to take a position on whether the expiration value of the DAX Futures, as calculated by HedgeStreet (based on the Eurex December 2008 DAX Futures contract), will be greater than 4800.00 at 11:30am ET on December 19, 2008.
Binary Name Format
[LTD CLOSE TIME][uNDERLYING FUTURES][ASSET][sTRIKE OPERATOR][sTRIKE PRICE][LAST TRADING DAY]
LTD Close Time
"11:30AM" - The time on the last trading date that the contract will stop trading.
Underlying Futures
"Dec" - The DAX Futures contract month on which the option is based, where the year is the nearest delivery year available for the futures month listed. In this case, the underlying futures contract month would be December 2008.
Asset
"Germany 30" - The asset name indicating the underlying for the binary option is the price of DAX Futures.
Strike Operators
">" - The payout is based on whether the expiration value of the DAX Futures calculated by HedgeStreet on the settlement date is greater than (>) a specified level.
Strike Price
"4800.00" - The price level against which the final expiration value of the DAX Futures is compared to determine the settlement value ($0 or $100) for the contract.
Last Trading Day
"(19 Dec 08)" - The date the contract will stop trading.
Positions
For contracts with a ">" (greater than) strike operator, buy if you think the expiration value of the DAX Futures contract calculated by HedgeStreet on December 19, 2008 will be greater than 4800.00.
For contracts with a ">" (greater than) strike operator, sell if you think the expiration value of the DAX Futures contract calculated by HedgeStreet on December 19, 2008 will be less than or equal to 4800.00.
Settlement
For contracts with a ">" (greater than) strike operator, buyers receive a cash payout of $100 per contract if the expiration value of the DAX Futures contract calculated by HedgeStreet is greater than 4800.00 on December 19, 2008.
For contracts with a ">" (greater than) strike operator, sellers receive a cash payout of $100 per contract if the expiration value of the DAX Futures contract calculated by HedgeStreet is less than or equal to 4800.00 on December 19, 2008.
Summary
Germany 30 binary options are cash-settled options with an all-or-nothing payout that allow traders to take a position on the expected direction of the DAX® Futures contracts. By trading these binary options, traders can speculate on where the DAX Futures will be at 11:30am ET on the designated expiration date.
Contract Specifications
Options Type
Binary Option - A European-style option contract that is cash settled on the expiration date with an all-or-nothing payout.
Underlying
The underlying is the the price of the DAX Futures contracts (in Euros) traded on the Eurex® exchange (Eurex)1.
Price Quotation
U.S. dollars and cents.
Minimum Tick Size
$0.25 per contract. All prices must be entered in increments of $0.25, starting from the minimum payout value of $0 to the maximum payout value of $100.
Trading Hours
Regular session trading hours are 8:00am to 5:00pm ET, Monday through Thursday and 8:00am to 3:00pm ET on Friday. Evening session trading hours are from 6:00pm to 9:00pm ET Monday through Thursday. On the contract's specified last trading day, Germany 30 binary contracts close at 11:30am ET. For additional information, please refer to the Trading Hours Table.
Trading Months
The futures contract months that will be used for the underlying will be taken from four Eurex DAX Index Futures Contract delivery months (DFC Delivery Month): March, June, September, or December. Please refer to the Settlement Source Table for a schedule of the dates associated with the specific DFC Delivery Months that will be used as the underlying.
Last Trading Day
Trading in the contract will stop as of the date listed in the contract's name and in the "At a Glance" table (right).
Expiration Date
The date on which the expiration value for the contract is calculated or released. For Germany 30 binary options, the expiration date is usually the same day as the last trading day, which is listed in the "At a Glance" table (right).
Settlement Date and Time
The date on which the final settlement value is determined and cash payouts are made to the appropriate member accounts. Contracts are settled on the specified settlement date, which is listed in the "At a Glance" table (right). Settlement generally occurs within an hour of a contract's closing time (the closing time is displayed in the name of the contract). For Germany 30 binary options, the settlement date is usually the same as the expiration date.
Expiration Value
The expiration value for Germany 30 binaries is calculated by HedgeStreet by using a proprietary algorithm that takes a sampling of data points obtained from the relevant DAX Futures contract currently trading on Eurex. HedgeStreet calculates the expiration value by taking the last 25 trade prices in the designated Eurex DAX Futures contract just prior to the close of trading in the designated HedgeStreet binary option contract and removes the highest 5 and the lowest 5 trade prices, using the remaining 15 Eurex DAX Futures trade prices to calculate the expiration value. The calculation used is a simple average of all 15 DAX Futures contract trade prices.
Settlement Value
The settlement value, a cash payout, is either $0 or $100.
Speculative Position Limits
The aggregate position limit is 2,500 contracts.
Strike Price Intervals
Daily duration: 20 pt increments for all strike prices; Weekly duration: 50 pt increments for all strike prices.
Example
11:30AM Dec Germany 30 > 4800.00 (19 Dec 08)
This binary options contract allows traders to take a position on whether the expiration value of the DAX Futures, as calculated by HedgeStreet (based on the Eurex December 2008 DAX Futures contract), will be greater than 4800.00 at 11:30am ET on December 19, 2008.
Binary Name Format
[LTD CLOSE TIME][uNDERLYING FUTURES][ASSET][sTRIKE OPERATOR][sTRIKE PRICE][LAST TRADING DAY]
LTD Close Time
"11:30AM" - The time on the last trading date that the contract will stop trading.
Underlying Futures
"Dec" - The DAX Futures contract month on which the option is based, where the year is the nearest delivery year available for the futures month listed. In this case, the underlying futures contract month would be December 2008.
Asset
"Germany 30" - The asset name indicating the underlying for the binary option is the price of DAX Futures.
Strike Operators
">" - The payout is based on whether the expiration value of the DAX Futures calculated by HedgeStreet on the settlement date is greater than (>) a specified level.
Strike Price
"4800.00" - The price level against which the final expiration value of the DAX Futures is compared to determine the settlement value ($0 or $100) for the contract.
Last Trading Day
"(19 Dec 08)" - The date the contract will stop trading.
Positions
For contracts with a ">" (greater than) strike operator, buy if you think the expiration value of the DAX Futures contract calculated by HedgeStreet on December 19, 2008 will be greater than 4800.00.
For contracts with a ">" (greater than) strike operator, sell if you think the expiration value of the DAX Futures contract calculated by HedgeStreet on December 19, 2008 will be less than or equal to 4800.00.
Settlement
For contracts with a ">" (greater than) strike operator, buyers receive a cash payout of $100 per contract if the expiration value of the DAX Futures contract calculated by HedgeStreet is greater than 4800.00 on December 19, 2008.
For contracts with a ">" (greater than) strike operator, sellers receive a cash payout of $100 per contract if the expiration value of the DAX Futures contract calculated by HedgeStreet is less than or equal to 4800.00 on December 19, 2008.
Quelle: Hedgestreet