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Summary
Germany 30 Bungees (limited risk futures) are cash-settled contracts with a variable payout that allow traders to take a position on the expected direction of the DAX® Futures contracts. Bungees enable traders to speculate on where the DAX Futures will be on the designated expiration date, while limiting their risk exposure to extreme volatile price changes.
Contract Specifications
Contract Type
Bungee (limited risk future) - A cash-settled contract with a variable payout structure and maximum contract value ranging from $100 to $500.
Underlying
The underlying is the the price of the DAX Futures contracts (in Euros) traded on the Eurex® exchange (Eurex)1.
Contract Value
$200; The maximum contract payout value.
Tick Value
$0.01; The dollar value payout per tick movement in the underlying market.
Tick Size
0.01; The incremental price movement in the underlying that corresponds to the specified tick value.
Minimum Price Increment
0.01; All prices must be entered in increments equivalent to the contract's tick size of 0.01, starting from the specified floor (lower level) to the specified cap (upper level).
Bungee Range
200; The values between which payout for the Bungee contract is determined, defined by a floor and a cap.
Trading Hours
Regular session trading hours are 8:00am to 5:00pm ET, Monday through Thursday and 8:00am to 4:00pm ET on Friday. Evening session trading hours are from 6:00pm to 9:00pm ET Monday through Thursday. On the contract's specified last trading day, Germany 30 bungee contracts close at 4:00pm ET. For additional information, please refer to the Trading Hours Table.
Trading Months
The futures contract months that will be used for the underlying will be taken from four Eurex DAX Index Futures Contract delivery months (DFC Delivery Month): March, June, September, or December. Please refer to the Settlement Source Table for a schedule of the dates associated with the specific DFC Delivery Months that will be used as the underlying.
Last Trading Day
Trading in the contract will stop as of the date listed in the contract's name and in the "At a Glance" table (right).
Expiration Date
The date on which the expiration value for the contract is calculated or released. For Germany 30 bungee contracts, the expiration date is usually the same day as the last trading day, which is listed in the "At a Glance" table (right).
Settlement Date and Time
The date on which the final settlement value is determined and cash payouts are made to the appropriate member accounts. Contracts are settled on the specified settlement date, which is listed in the "At a Glance" table (right). Settlement generally occurs within an hour of a contract's closing time (the closing time is displayed in the name of the contract). For Germany 30 bungee contracts, the settlement date is usually the same as the expiration date.
Expiration Value
The expiration value of Germany 30 bungees is is calculated by HedgeStreet by using a proprietary algorithm that takes a sampling of data points obtained from the relevant DAX Futures contract currently trading on Eurex. HedgeStreet calculates the expiration value by taking the last 25 trade prices in the designated Eurex DAX Futures contract just prior to the close of trading in the designated HedgeStreet bungee contract and removes the highest 5 and the lowest 5 trade prices, using the remaining 15 Liffe Germany 30 Futures trade prices to calculate the expiration value. The calculation used is a simple average of all 15 Germany 30 Futures contract trade prices.
Settlement Value
The settlement value, a cash payout, ranges from $0 to $200, depending on the final expiration value of the DAX futures relative to the Bungee's range.
Speculative Position Limits
The aggregate position limit is 125,000 contracts.
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Example
4PM Jun Germany 30 4600.00 to 4800.00 (W) Bungee (08 May 09)
This Bungee contract allows traders to take a position on movements in the DAX futures price within the range of 4600.00 to 4800.00, as calculated by HedgeStreet (based on the Eurex June 2009 DAX Futures contract) on May 8, 2009.
Bungee Name Format
[LTD CLOSE TIME][UNDERLYING FUTURES][ASSET][RANGE][DURATION][LAST TRADING DAY]
LTD Close Time
"4PM" - The time on the last trading date that the contract will stop trading.
Underlying Futures
"Jun" - The DAX futures contract month on which the contract is based, where the year is the nearest delivery year available for the futures month listed. In this case, the underlying futures contract month would be June 2009.
Asset
"Germany 30" - The asset name indicating the underlying for the binary option is the price of DAX Futures.
Range
"4600.00 to 4800.00" - specifies the values between which payout is determined. The floor (lower level) is 4600.00, and the cap (upper level) is 4800.00. Traders receive $0.01 per 0.01 movement in the underlying DAX futures price within this range.
Duration
"(W)" - Weekly duration.
Last Trading Day
"(08 May 09)" - The date the contract will stop trading.
Positions
Buy if you think the DAX futures price will increase as of May 8, 2009.
Sell if you think the DAX futures price will decrease as of May 8, 2009.
Settlement
Final payout is based on the expiration value of DAX futures, relative to the Bungee's range. For buyers, the final payout is as follows:
| Condition |
Payout |
| Expiration value of DAX future is < = floor |
$0 |
| Expiration value of DAX future is > = cap |
$200 |
| Expiration value of DAX future is between floor and cap |
$0.01 per 0.01 tick above the floor |
For sellers, the final payout is as follows:
| Condition |
Payout |
| Expiration value of DAX future is < = floor |
$200 |
| Expiration value of DAX future is > = cap |
$0 |
| Expiration value of DAX future is between floor and cap |
$0.01 per 0.01 tick below the cap |
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