Glossar

A financial term meaning the market price of the asset is currently trading exactly at the target price

A binary option is one that offers a fixed return predetermined at the onset of the contract

An instrument allowing the customer to decide whether the underlying asset will at expiry be located inside or outside a specified range (formed by a lower and upper target price).

Early closure refers to the ability of the investor to close an open position so that the option will immediately expire.

The expiry level of the underlying asset at the time of expiry of the asset is based on a feed provided by Data Provider. For a detailed explanation of calculation of the expiry levels please refer to Expiry Calculation.

The expiry time is the time and date at which an option expires.

An instrument allowing the customer to decide whether the underlying asset will be above or below the target price when the expiry time of the option is reached

An option on a Boundary instrument typically offering a return of up to 70% if the underlying asset expires “Inbound” i.e. within the range formed by the upper and lower target values.

The amount invested in the particular option

A financial term meaning the option is currently profitable e.g. in the case of a high option the market price is higher than the target price

An option on a High/Low instrument typically offering a return of up to 85% if the underlying asset expires at a lower level than the option target price.

The market price quoted by optionFair represents the current value of the underlying asset based on a feed provided by Data Provider.

An option on a One Touch instrument typically offering a return up to 70% if the underlying asset does not reach the target price during the lifetime of the option. Note: Should a No Touch option reach the target price at any time during the lifetime of the option then the option automatically and immediately expires “Out of the money”.

An instrument allowing the customer to decide whether the underlying asset will reach the target value during the lifetime of the option

A financial term meaning the option is currently not profitable e.g. in the case of a high option the market price is lower than the target price

An option on a Boundary Instrument offering a return of up to 70% if the underlying asset expires “Outbound” i.e. outside the range formed by the upper and lower target values.

For selected options, optionFair™ may refund up to 15% of the investment amount in a case of expiry “out of the money”. Refund amounts are stated on the trading slip prior to purchase of the option.

The amount returned to the investor after expiry of the option in the event that an option expires “in the money”. optionFair™ typically returns 70% in a case of expiry “in the money”. For example in a case of an investment of 100 EUR the return will be 170 EUR.

The Target price (sometimes referred to as the strike or purchase price of an option) is the price at which optionFair™ is willing to “sell” an option.

An option on a One Touch instrument offering a return of up to 70% if the underlying asset reaches the target price at any time during the lifetime of the option. (Note – Should a touch option reach the target price at any time during the lifetime of the option then the option automatically and immediately expires “in the money”).

The asset (see underlying asset types) on which optionFair™ is writing an option.

Stocks (e.g. Google, British Airways)

Commodities, (e.g. Gold, Brent Crude)

Indices: (e.g. NASDAQ, FTSE 100)

Currencies: (e.g. US$/EUR)

For full details see Asset Index