Читать книгу Binary Options - Hamish Raw - Страница 19

Trader A’s maximum loss since he bought the downbet is 60 ¥ $1 = $60, and this he will have to bear if the share price rises by over $1 from its current level of $100. His maximum potential winnings have been reduced to $40, which he will receive if the underlying either falls, stays where it is at $100, or rises less then $1. In other words Trader A has backed an ‘odds-on’ bet.

Fig 1.6.2 shows Trader B’s profile having sold the in-the-money downbet to Trader A for 60. Trader B needs the share price to rise $1 in order to win. If the underlying rises exactly $1 to $101, then the downbet will be worth 50 and Trader B wins $10. A rise over $1 and the downbet expires with the underlying above $101 and Trader B collects the full $60.