Looking at AUD/USD bianaries this morning there were a few things I didn’t understand. There was a strike at >.9358. If the price was at .9352 would’t this be an ITM sell? Also the ticket said a max profit of $15 and a max loss of $85. I thought the spread would be closer to $50/$50 for an in the money sell. What am I missing here? If I were to sell this AUD/USD>.9358 and it continued to go down to .9340 would it be more valuable than the $16.25 it cost me to sell? I have a snipit of the ticket and market at the time but when I tried to upload it it says the file exceeds the 195KB allowed by the APEX website. I’m not sure I quite understand this although it seems like a simple concept, true or false > or = .9358, false to sell and true to buy. What am I missing here?
Aud/usd itm
If the market is at .9352 and the strike is .9358 then that is not a ATM strike. An ATM strike is when the underlying market is at the SAME price as the strike. Think about it 1/10th of tick at expiration will determine if its ITM or OTM. So ATM is truly ATM.
If the market was at .9352 (also the indicative index) then yes a .9358 would be a ITM sell. (though you have 2 conclusions so not sure which conclusion you actually have). This conclusion is right it is a ITM contract.
You mentioned “you though the spread would be” Its not a spread its a binary/ Maybe you mean the bid/offer spread? Nadex has spreads as well so you definitely want to differentiate.
If you sold it at 16.25 then it cost you $100 - 16.25 to sell it. The sell price is max profit when selling $100 minus that is max risk.
When buying the offer price is max risk when buying $100-the buy price is max profit.
So you would sell it at 16.25 with the intention of buying it back if it went lower at a lower price.
Remember when selling you want to buy back lower
Remember when buying you want to sell back higher.
As stated on the how to upload a image in all the courses - check any course and in the menu under support it shows how to do an image. Uncheck the upload box and just use jing/screencast.
You are missing how binaries are priced thinking that a sell or a binary has the same outcome and that is inaccurate. One price if if selling it the other price is if buying it. Please watch the education - nadex - intro videos to learn about Nadex, the platform, and binary basics. Also we had a video last week called binaries made easy. Make sure to watch that one under education - webinar recordings bonus webinars3