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THE HEDGESTREET EXCHANGE INTRODUCES NEW "BUNGEE" CONTRACT
- HedgeStreet Continues to Add Structured, Limited Risk Products -
CHICAGO, January 5, 2009 - HedgeStreet.com, the first regulated, retail-focused futures exchange in the US for online binary options trading, announced that as of today, they will be offering a new type of contract: limited risk futures, or Bungee contracts. In an era where full disclosure is especially valuable to Americans, HedgeStreet.com continues to offer traders complete transparency through its product offering. These contracts will be available to trade side-by-side on the same underlying assets as HedgeStreet's already popular binary contracts, including energy futures (crude oil, natural gas, and Rbob gas), currencies (EUR, GBP, CAD, CHF, YEN), metal futures (gold, silver, copper) and equity index futures (Germany 30 and FTSE 100).
Bungees are cash-settled contracts that offer traders a variable payout structure and limited risk exposure by limiting the value of each contract at the upper and lower ends of each Bungee's range if the value of the underlying moves above the cap or below the floor. A trader's potential loss will not exceed the amount invested, and the potential gain is limited by the contract's cap (for buyers) or floor (for sellers).
Like a traditional futures contract, Bungee contracts are sold if the trader expects the price to fall, or bought if it's expected to rise. Traders gain or lose depending on how much the underlying price goes up or down. These contracts have total values of between $100 and $500, depending on the contract's range and tick value. Likewise, the gain or loss per tick varies depending on the contract, but ranges from $.01 to $1.00.
About HedgeStreet
HedgeStreet is a secure, fully-transparent futures exchange, subject to regulatory oversight by the Commodity Futures Trading Commission (CFTC). HedgeStreet, Inc., which owns and operates the HedgeStreet Exchange, is a wholly-owned subsidiary of UK-based IG Holdings Group plc and is headquartered in Chicago, Illinois. To open an account, real or practice, visit: www.hedgestreet.com.
Warning: Forward Looking Statements
This announcement contains forward-looking statements, including such statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements concern or may affect future matters, such as HedgeStreet's future economic results, business plans and strategies, and are based upon the current expectations of the HedgeStreet management. They are subject to a number of risks and uncertainties that might cause actual results and events to differ materially from the expectations expressed in the forward-looking statements. Forward-looking statements include statements typically containing words such as "intends", "expects", "anticipates", "plans", and "estimates". Factors that could cause or contribute to differences in current expectations include, but are not limited to, regulatory developments, competitive conditions, technological developments and general economic conditions. HedgeStreet assumes no responsibility to update any of the forward-looking statements contained in this announcement, whether as a result of new information, future events or otherwise, except to the extent legally required.
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