High/Low

A High/Low instrument is one which is written around the current market price and allows the user to decide whether the market will by Higher or Lower at expiration relative to the current market price.

One Touch

A One Touch instrument is one which is written around the target price and whose outcome depends on whether the market price reaches or does not reach the target price prior to the expiry of the option.

Boundary

A Boundary instrument is one which is written around two target prices (a lower and an upper target) together forming a boundary range. The outcome of this option depends upon the market price at expiration relative to the boundary range.

The following parameters are common to all the three instruments:

• All options offer a fixed return to the client based on a percentage of the invested amount.
• Options expiring “in the money” will typically offer a return of 70%-85% of the investment e.g. on an investment of 100$ the return will be 170$-185$.
• Options expiring “out of the money” will typically offer a refund of 0%-15% of the investment e.g. on an investment of 100$ the refund will be $0-15$.
• Options expiring “at the money” will result in full return of the investment amount to the client.

For a fuller explanation of these possibilities see the following section.

This is a term meaning the option is currently profitable. Options that expire “in the money” are those that expire yielding a profit for the client. Trading at www.optionFair.com will yield expiration “in the money” under the following conditions:

High/Low Instrument

• A High option where the expiry level is above the target price.
• A Low option where the expiry level is below the target price.

One Touch Instrument

• A Touch option where the market price reaches the target price before the expiry time. In such an event the option automatically and immediately expires “in the money”.
• A No-Touch option in the event that the market price does NOT reaches the target price before the expiry time.

Boundary Instrument

• An Inbound option where the expiry level is within the boundary (i.e. above the lower and below the upper target price).
• An Outbound option where the expiry level is outside the boundary (i.e. below the lower or above the upper target price).

This is a term meaning the option is currently not profitable. Options that expire “out of the money” are those that expire yielding a loss for the client. Trading at www.optionFair.com will yield expiration “out the money” under the following conditions:

High/Low Instrument

• A High option where the expiry level is below the target price.
• A Low option where the expiry level is above the target price.

One Touch Instrument

• A Touch option in the event that the market price does NOT reaches the target price before the expiry time.
• A No-touch option where the market price reaches the target price before the expiry time.

Boundary Instrument

• An inbound option where the expiry level is outside the boundary (i.e. below the lower or above the upper target price).
• An outbound option where the expiry level is within the boundary (i.e. above the lower and below the upper target price)

This is a term meaning the option is currently trading at the same price as the target price. Options that expire “at the money” are those that expire at the target price. In the event of expiry at the money, optionFair will return the invested amount to the client. Trading at www.optionFair.com will yield expiration “at the money” under the following conditions:

High/Low Instrument

• A high option where the expiry level is at the target price.
• A low option where the expiry level is at the target price.

Boundary Instrument

• An inbound option where the expiry level is at one of the boundaries (either the lower or upper target price).
• An outbound option where the expiry level is at one of the boundaries (either the lower or upper target price).