Expiration Rate & Rules

Expiration time – or “expiry time”, is the date and time on which the binary option on a specific asset “expires”. Asset value at this point is called expiration rate that is compared to the entry rate.
The binary option’s expiration time is the time at which the system determines whether a prediction was correct or not. At this stage the two asset prices (the “bid” price, i.e. the price at the time of a prediction and the expiry price) of the selected stock, commodity or index are compared. The trader then either earns or loses money, depending on whether his prediction regarding the price change was correct.

Binary options expiration times are much shorter than those of other trading instruments. The outcome of your prediction is known within a short period of time, from 30 minutes to several hours.

Expiry rules

The expiration rates are calculated based on the last known quotes provided by Quotes Providers:
Currencies: (Bid + Ask)/2
Stocks: (Last+Ask+Bid)/3
Commodities: Gold futures: (Last+Ask+Bid)/3
Oil futures: Last value
Indices: Last value

Following explanation of the terms used to calculate the expiration rate

Bid – The last known price for selling an asset as provided by Quotes Providers, prior to the options expiration time.
Ask – The last known price for buying an asset as provided by Quotes Providers, prior to the options expiration time.
Last Quoted Price – The last known price that was actually paid for the asset, prior to the options expiration time. May be the same or different than the bid or the ask prices.

Examples

Dow Jones price index, or FTSE, is calculated from the last known price on the exchange.
Stock Citigroup, there is a price for Bid and price for Ask.
Also, there has been made a purchase of Citigroup shares fractions of seconds before expiration, for example, 19:59:59.
Thus, Acervo Group Trader calculates the end price as the average price equal to (Bid + Ask + Last) / 3.
If the price of Citigroup at 19:59:59 was: Bid = 3.50, Ask = 3.52 and the last transaction (Last) 3.51.
Accordingly, the price at which the option closes will be (3.50 +3.52 +3.51) / 3 = 3.51

Acervo Group offers to buy options at a price calculated by a special algorithm.
This price is not the market quotation. Price performance – stock exchange price of the asset at the time of the expiration of the option based on data received from the provider of stock exchange quotations.
It is this price that will determine the profitability of each option.
Information, including expiration rules for each separate asset, can be found in the “Assets” section.

Asset Market Open time Close time Expiration
Dow Jones USA 14:30 20:55 Last value
Dow Jones USA 14:30 20:55 Last value
NASDAQ 100 Futures USA 14:30 20:55 Last value
S&P 500 mini futures USA 14:30 20:55 Last value
Apple USA 14:30 20:55 (last + ask + bid)/3
Citigroup USA 14:30 20:55 (last + ask + bid)/3
Coca Cola USA 14:30 20:55 (last + ask + bid)/3
General Electric USA 14:30 20:55 (last + ask + bid)/3
Google USA 14:30 20:55 (last + ask + bid)/3