FTSE 100 binary options are cash-settled options with an all-or-nothing payout that allow traders to take a position on the expected direction of the FTSE 100^® Futures contracts. By trading these binary options, traders can speculate on where the FTSE 100 Futures will be at 10:00am, 11:00am, 12:00pm, 1:00pm, 2:00pm, 3:00pm ET or 4:00pm ET on the designated expiration date.

Options Type
Binary Option - A European-style option contract that is cash settled on the expiration date with an all-or-nothing payout.

Underlying
The underlying is the price of the FTSE 100 Futures contracts traded on the Liffe^® exchange (Liffe)¹.

Price Quotation
U.S. dollars and cents.

Minimum Tick Size
$0.25 per contract. All prices must be entered in increments of $0.25, starting from the minimum payout value of $0 to the maximum payout value of $100.

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, FTSE 100 binary contracts close at 10:00am, 11:00am, 12:00pm, 1:00pm, 2:00pm, 3:00pm ET or 4:00pm ET for intraday contracts or 4:00pm ET for other contracts. 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 Liffe FTSE 100 Index Futures Contract delivery months (FFC Delivery Month): March, June, September, or December. Please refer to the Settlement Source Table for a schedule of the dates associated with the specific FFC 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 FTSE 100 binary options, 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 FTSE 100 binary options, the settlement date is usually the same as the expiration date.

Expiration Value
The expiration value for FTSE 100 binaries is calculated by HedgeStreet by using a proprietary algorithm that takes a sampling of data points obtained from the relevant FTSE 100 Futures contract currently trading on Liffe. HedgeStreet calculates the expiration value by taking the last 25 trade prices in the designated Liffe FTSE 100 Futures contract just prior to the close of trading in the designated HedgeStreet binary option contract and removes the highest 5 and the lowest 5 trade prices, using the remaining 15 Liffe FTSE 100 Futures trade prices to calculate the expiration value. The calculation used is a simple average of all 15 FTSE 100 Futures contract trade prices.

Settlement Value
The settlement value, a cash payout, is either $0 or $100.

Speculative Position Limits
The aggregate position limit is 2,500 contracts.

Strike Price Intervals
Daily duration: 30 pt increments for all strike prices; Daily duration: 20 pt increments for all strike prices; Weekly duration: 50 pt increments for all strike prices.

 Back to Top

4PM Jun FTSE 100 > 4500.00 (12 Jun 09)
This binary options contract allows traders to take a position on whether the expiration value of the FTSE 100 Futures, as calculated by HedgeStreet (based on the Liffe December 2008 FTSE 100 Futures contract), will be greater than 4500.00 at 4:00pm ET on June 12, 2009.

Binary Name Format
[LTD CLOSE TIME][UNDERLYING FUTURES][ASSET][STRIKE OPERATOR][STRIKE PRICE][LAST TRADING DAY]

LTD Close Time
"4PM" - The time on the last trading date that the contract will stop trading.

Underlying Futures
"Dec" - The FTSE 100 Futures contract month on which the option 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 Jun 2009.

Asset
"FTSE 100" - The underlying for the binary option.

Strike Operators
">" - The payout is based on whether the expiration value of the FTSE 100 Futures calculated by HedgeStreet on the settlement date is greater than (>) a specified level.

Strike Price
"4500.00" - The price level against which the final expiration value of the FTSE 100 Futures is compared to determine the settlement value ($0 or $100) for the contract.

Last Trading Day
"(12 Jun 09)" - The date the contract will stop trading.

Positions
Buy if you think the expiration value of the FTSE 100 Futures contract calculated by HedgeStreet on June 12, 2009 will be greater than 4500.00.

Sell if you think the expiration value of the FTSE 100 Futures contract calculated by HedgeStreet on June 12, 2009 will be less than or equal to 4500.00.

Settlement
Buyers receive a cash payout of $100 per contract if the expiration value of the FTSE 100 Futures contract calculated by HedgeStreet is greater than 4500.00 on June 12, 2009.

Sellers receive a cash payout of $100 per contract if the expiration value of the FTSE 100 Futures contract calculated by HedgeStreet is less than or equal to 4500.00 on June 12, 2009.

 Back to Top

ANY DATA DISPLAYED HEREIN IS PROVIDED ON AN AS IS, AS AVAILABLE BASIS. HEDGESTREET HEREBY DISCLAIMS ANY AND ALL WARRANTIES, UNDERTAKINGS AND REPRESENTATIONS, EXPRESS AND IMPLIED, IN REGARD TO SUCH DATA AND THE USE AND INABILITY TO USE SUCH DATA. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, HEDGESTREET DOES NOT GUARANTEE THE ACCURACY, COMPLETENESS, CURRENCY, VALIDITY OR TIMELINESS OF THE DATA. ALL USES OF SUCH DATA AND ANY RELIANCE THEREON ARE AT THE USER'S SOLE RISK.

In the event that any market irregularities are declared by HedgeStreet, trading in this Binary market may be halted. If it is determined by HedgeStreet that the market must be halted for any other reason, an explanation will be posted on HedgeStreet's website within a reasonable amount of time but no later than 24 hours after the initiation of the halt. To provide as extensive and relevant a market as possible, HedgeStreet may add new Binary offerings frequently and at its sole discretion. In some cases, new Binary offerings may affect the demand (and thus in some cases the liquidity and/or trading price) for existing, related Binaries. Traders should consider this dynamic aspect of HedgeStreet when making trading decisions.

¹FTSE^® and FTSE 100^® are trade marks of the London Stock Exchange plc ("LSE") and the Financial Times Limited ("FT") and is used by FTSE International Limited ("FTSE") under license. The prices relating to any index are not in any way sponsored, endorsed or promoted by FTSE or by the LSE or by FT and neither FTSE nor LSE nor FT makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of such prices and/or the figure at which any index stands at any particular time on any particular day or otherwise. Neither FTSE nor LSE nor FT shall be liable (whether in negligence or otherwise) to any person for any error in any index and neither FTSE nor LSE nor FT shall be under any obligation to advise any person of any error therein. The FTSE Future Binary Option Contracts are not sponsored, endorsed, sold or promoted by FTSE, LSE or FT. FTSE, LSE and FT do not accept any liability in connection with the trading of these products.

Liffe^® is a registered mark of LIFFE Administration and Management Corporation (Liffe). HedgeStreet, Inc. is not affiliated with Liffe and the FTSE 100 Future Binary Option Contracts are not sponsored, endorsed, sold or promoted by Liffe in any way.