Glossary

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 such 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 70%-89% return if the underlying asset expires “Inbound” i.e. within the range formed by the upper and lower target values. In the case of the option expiring “Outbound” i.e. outside this range, 0%-15% of the invested amount will typically be refunded.

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

The amount invested in the particular option.

An option on a High/Low instrument typically offering a 70%-89% return if the underlying asset expires at a lower level than the option target price, and 0%-15% refund if the underlying asset expires at a higher level than the option target price.

The market price quoted by OptioNet 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 70%-89% return 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” typically with a 0%-15% refund on the investment amount.

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 typically offering a 70%-89% return if the underlying asset expires “Outbound” i.e. outside the range formed by the upper and lower target values. In the case of the option expiring “Inbound” i.e. within this range, 0%-15% of the invested amount will typically be refunded.

The amount refunded to the investor after expiry of the option in the event that an option expires “out of the money”. OptioNet typically refunds 0%-15% in a case of expiry “out of the money”. For example in a case of an investment of 100$ the refund will be 0$-15$

The amount returned to the investor after expiry of the option in the event that an option expires “in the money”. OptioNet typically returns 70-89% in a case of expiry “in the money”. For example in a case of an investment of 100$ the return will be $170-$189.

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

An option on a One Touch instrument typically offering a 70%-89% return 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”) . Should the option expire without the target price having been reached then 0%-15% of the investment amount will typically be refunded.

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

Currencies: (e.g. EUR/USD, USD/JPY, GBP/USD)

Commodities: (e.g. Gold, Silver, Oil)

Stocks: (e.g. Google, Barclays, Sony)

Indices: (e.g. NASDAQ, FTSE 100, Nikkei 225)

For full details see Asset Index