Options Bootcamp 58: What the Heck Are Binary Options?
Oct 30, 2015•59 min
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Episode description
Options 101: Today we are joined by Dan Cook from Nadex. He walks us through the following:
- What is a binary option?
- How does the pricing work vs. standard options pricing?
- How do the ticks work?
- Is there a multiplier?
- Does the price represent the pure probability of an option expiring in-the-money?
- How does expiration work?
- What about the final minutes around expiration?
- What is the farthest out you can trade a binary on Nadex?
- The Greeks: Binaries vs. Standard options
- Which underlyings offer binaries?
- How can you trade binaries?
- What is a typical binary use case?
Mail Call: Get your questions answered by the team.
- Question from Jeb16 - I have seen a number of sports books online offering products that appear to be sports derivatives. Is it possible to trade actual products based on sports outcomes or other event-type derivatives in a legal exchange-traded form in the U.S.?
- Question from Amelia G. - Do you notice anything different in the options trading in higher volume products vs. lower volume products?
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