Trading Rules

This trading application is different so the player needs to understand exactly how it works.


Generic Rules:
  1. INDICATIVE RETURNS: All percent returns on offer for any strategy are always ONLY INDICATIVE. Due to latency on the internet the percent return you see on your screen is historic even for the fastest fibre optic connection. This means that the percentage return the player receives may be higher or lower than the percentage return that was on the screen when you pressed the ‘Trade’ button.
  2. INDICATIVE STRIKE PRICES: All strike prices seen on screen are INDICATIVE, due to latency recorded/realized strike price may be higher or lower subject to market movements.
  3. INDICATIVE ‘CLOSE OUT’ OFFER: We offer a 'Close Out' function almost to the final seconds to expiry. We show an INDICATIVE bid to the player who wants to close out their trade in order to take their profits or cut their losses.
  4. SPAN EVALUATION OF RISK: We use a SPAN-like analysis of risk and exposure of the portfolio of options sold to our clients. This is done on an asset + expiry basis. As a consequence of this system we will revise and make adjustments to the percentage returns on offer, so expect to see some fluctuation in the advertised returns throughout any session.
  5. ‘OVER’ & ‘UNDER’ PERCENTAGE RETURNS IN EXCESS OF 100%: The skewing of percentage returns described in 5. means that the ‘Over’ and ‘Under’ could offer in excess of 100%. A new piece of functionality, ‘Value Trades’, in the form of a tickertape, will flash onto your screen displaying active 'Over' and 'Under' trades with returns exceeding 100%.
  6. PRICE CHART RENDERING: Price charts take time to render or build in a manner that can be presented on your screen. This means there is a slight delay.
    Below on the ‘Trading’ page, top right, you will see a ‘Current Price’ (9422.72) of the asset. This is the fastest up-to-date price. The price (9422.68) in the red block sliding up and down the price scale is slightly delayed.
  7. STRIKE PRICE/ASSET PRICE SPREAD: Over time you will see the strike prices move towards the asset price. This is because we are a sporting lot who want to treat our clients fairly! For example, take a look at the HighLine.
    The base return on this strategy is 300%. If you look at the distance between the asset price (white) and the strike price (green) you will see that the gap is greater on the left than just prior to the vertical ‘Trade Suspended’ line on the right. If this gap between the strike price and asset price was constant throughout the life of the trade then the earlier one places the trade the better chance of winning the 300% return.
    Clearly the jaws of the Tunnel are much wider on the left than on the right of the price chart meaning that the probability of the client winning is not a function of time to expiry.
  8. COLOUR FORMATTING: In the Tunnel chart the red is the ‘no go’ area and is where the trade will lose. The HighLine chart above shows a blue shading where the trade will win. This colour format is common to all trades.
    The colour of the lines of the strikes is also relevant. In the Tunnel one can see the boundary lines are coloured green. This means it is OK for the price to stray into the red areas and that the position of the asset price at the ‘Finish Line’ is what counts.
    Below, the Double No-Touch has red lines (not green) to depict that the asset price must not even touch one of these lines to avoid the trade being KO’d.