One of the best methods to improve your trading results is to
understand every aspect of how binary options operate. Learning about
how the options are calculated at expiry is a valuable tool to
understanding the world of binary options. Expiry calculation refers to
how the price of the asset is calculated at the time of the binary
option’s expiry. Since many assets employ both a bid and ask price,
calculating of the expiry requires a formula to ensure that all expiries
are calculated fairly and reflective of the market. If you need more
tips about the world of binary options or you want to learn about
effective trading strategies you can view our binary options trading
videos anytime, anywhere by clicking here.
Bid Price – the bid price refers to the updated market price that is used for selling an asset before the option expiry time.
Ask Price – the ask price refers to the updated market price that is used for buying an asset before the option expiry time.
Last Trade – this term refers to the last price that was paid for the asset prior to the expiry time.
Last Quoted Index Price – this term refers to the last quote price for an index before the option’s expiry time
For any reason if there is a break in the information stream so that no pricing data is received for the 60 seconds before expiry time, the data used will be the very first price quote after the option expires.
Asset Level Expiry Calculations
Individual Asset Expiry Calculation
To view how the expiry is calculated for individual assets, please see the asset index at the Binary Trading section.
If you have any other questions you can always contact a 24option account manager.
Meticulous Methodology
Our trading platform calculates the expiry values by using the formulas detailed below. Transparency is key to understanding the global markets and below you will find the formulas and terms used to calculate expiry times of all 24option’s options. Familiarize yourself with the terminology and formulas in our Binary Options Glossary and you will be able to understand how the expiry calculation of each of the binary options that you invest in with 24option.Expiry Calculation Terminology
The terms listed below are used at 24option when we describe our methodology of calculating expiry rates:Bid Price – the bid price refers to the updated market price that is used for selling an asset before the option expiry time.
Ask Price – the ask price refers to the updated market price that is used for buying an asset before the option expiry time.
Last Trade – this term refers to the last price that was paid for the asset prior to the expiry time.
Last Quoted Index Price – this term refers to the last quote price for an index before the option’s expiry time
For any reason if there is a break in the information stream so that no pricing data is received for the 60 seconds before expiry time, the data used will be the very first price quote after the option expires.
Asset Level Expiry Calculations
|
Type
|
Expiry Level Formula
|
|
Indices |
The last quoted index price that appears in the data provider field at the expiry time |
|
Currency |
The sum of the bid and ask price / 2 |
|
Stocks |
The sum of the bid and ask price / 2 |
|
Commodities |
The sum of the bid, ask prices / 2 |
To view how the expiry is calculated for individual assets, please see the asset index at the Binary Trading section.
If you have any other questions you can always contact a 24option account manager.
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