Binary Examples
Buying the FTSE®
It is 4.04pm and the FTSE® 100 is trading at 5700 – down 12 points from yesterday’s close of 5712.
The IG Index binary price for the 'FTSE® to Finish Up' binary is 18-22.
You believe the FTSE® is going to rally and finish up on the day so you buy £10 per point at 22 of the 'FTSE® to Finish Up' binary.
You were right and the FTSE® finishes the day strongly closing at 5714 – up 2 points from yesterday’s close of 5712. Your binary on the 'FTSE® to finish up' closes at 100 (remember all binaries close at 100 if the statement becomes true) and you win £780:
(100 – 22) x 10 = £780
If you were proved wrong and the FTSE® finished down on the day, your binary bet on the 'FTSE® to finish Up' would settle at 0 (remember all binaries close at 0 if the statement doesn’t occur) and you would lose £220.
22 (price) x 10 (stake) = £220
All binary bets with IG Index are limited risk. In the above example £220 represents your maximum possible loss on that bet.
OneTouch
It is 2.04pm and GBP/USD is at 1.5420. The price has been rising and you feel it will continue.
The IG Index binary price for the daily 'GBP/USD to Touch 15500' binary is 26-30.
You believe sterling is going to rally and move through the 1.5500 mark today, so you buy £10 per point at 30 of the 'GBP/USD to Touch 15500' binary.
You were wrong and sterling weakens over the day, closing at 1.5325. Your binary on 'GBP/USD to Touch 15500' closes at 0 (remember all binaries close at 0 if the statement doesn’t occur) and you lose £300:
30 (price) x 10 (stake) = £300
If you were proved right and GBP/USD rallied so that it touched or went through 1.5500 during the day, your binary bet would settle at 100 (remember all binaries close at 100 if the statement occurs) and you would have won £700.
(100 – 30) x 10 = £700
All binary bets with IG Index are limited risk. In the above example £300 represents your maximum possible loss on that bet.
Ladder
It is 1.45pm and the FTSE® 100 is trading at 5800, up 30 points on the open of 5770.
The IG Index binary price for the 'FTSE® to Finish Up > 60pts ' is 40-44.
You believe the FTSE® is going to continue its rally over the day and close more than 60 points up, i.e. at more than 5830, so you buy £10 per point at 44 of the 'FTSE® to Finish Up > 60pts'.
You were right and the FTSE® continues to rise, closing at 5841. Your binary on 'FTSE® to Finish Up > 60pts' closes at 100 (remember all binaries close at 100 if the statement occurs) and you win £560:
(100 – 44) x 10 = £560
If you were proved wrong and the FTSE® did not close more than 60 points up, or below 5830, your binary bet would settle at 0 (remember all binaries close at 0 if the statement doesn’t occur) and you would have lost £440.
44 x 10 = £440
All binary bets with IG Index are limited risk. In the above example £440 represents your maximum possible loss on that bet.
Tunnel
It is 3.45pm and the FTSE® 100 is trading at 5600, up 15 points from the open of 5585.
The IG Index binary price for the 'FTSE® to keep in range -30 to +30' is 78-82.
You believe the FTSE® is going to continue to stay within the 30-point limit each side of 5585 - meaning you feel it will not touch or go higher than 5615, or touch or go lower than 5555, at any time until expiry. So, you buy £10 per point at 82 of the 'FTSE® to keep in range -30 to +30'.
You were right and the FTSE® remains fairly unvolatile, closing at 5589 - within your tunnel range. Your binary on 'FTSE® to keep in range -30 to +30' closes at 100 (remember all binaries close at 100 if the statement occurs) and you win £180:
(100 – 82) x 10 = £180
If you were proved wrong and the FTSE® moved past or touched either side of the range - higher than 5615 or lower than 5555 - at any time before expiry, your binary bet would settle at 0 (remember all binaries close at 0 if the statement doesn’t occur) and you would have lost £820.
82 x 10 = £820
All binary bets with IG Index are limited risk. In the above example £820 represents your maximum possible loss on that bet.
In respect of binary bets IG Index Ltd is licensed and regulated by the Gambling Commission. Licence number 066-002628-R-103649-002.