Having a well-rounded understanding of binary options trading is crucial if you want to become successful in this industry. And to help you work your way up the ladder, we have provided our expiry rules in our website. These rules apply to all of your trades, and our expiry rates depend on the last known rate from Reuters.
Is the expiry rate rule universal for all trades?
We highly encourage you to go through our rules for Cedar Finance expiry rates. By Cedar Finance trading various assets from four different markets, namely Stocks, Commodities, Currency Pairs, and Indices, you can have a general idea on what expiry rates are.
Although we have a universal rule for expiry rates, we still use varying rules per underlying Cedar Finance asset. To expand your knowledge in our Cedar Finance expiry rate rules, it’s essential that you familiarize yourself with the terms used when calculating for the expiry rates. Some of these commonly used terms include Bid, Ask, and Last Quoted Price.
Defining Bid, Ask, and Last Quoted Price
Learning about the meanings of these crucial terms allow you to easily comprehend our Cedar Finance expiry rate rules. Moreover, some of our rules apply to different assets, and not solely to your choice of assets. This simply means that you need to fully grasp how these terms are applied in expiry rates.
The term “Bid” is used when you’re referring to the price of an asset, depending on the last known price in Reuters before the option expires. In contrast, you can use the word “Ask” when you’re referring to the buying price of a selected asset. The price of this asset is based on the last know price from Reuters before the option reaches its expiration time.
Finally, when you use the term “Last Quoted Price” (LQP), you’re pertaining to the last known price that was actually paid for the asset before it reaches its expiry time. However, the LQP may or may not be equal to the Bid or Ask prices.