What is the settlement value of Nadex contracts?
For binary options, the settlement value is the amount you could receive back at the expiration of the contract. The settlement value of binary options is $100 for in-the-money contracts and $0 for out-of-the-money contracts.
Knock-outs and call spreads have a price floor and ceiling, so the settlement value will vary based on where the market is at expiration of the contract. However, the contract’s value does not go lower than the floor or higher than the ceiling, no matter how far the underlying market or Nadex Indicative Index Price are outside that range.
Learn more about settlement value.
Why is the closing price on the chart different from the final settlement price?
The indicative price displayed in the platform and on charts at Nadex is meant to serve as an indication of where the market price of a given underlying market, such as stock index futures, commodity futures, or spot FX pairs, is currently trading.
However, the indicative index price is displayed to members via Nadex by collecting the applicable underlying market data, applying the Nadex expiration value calculation, and then displaying this data to the platform once per second. While this data is a highly accurate indication of where the Nadex market may settle and its pricing at the given moment, again, it is not definitive. Due to this expiration value calculation being applied to the prices displayed on the Nadex charts and platform for the indicative price, when comparing Nadex pricing to other sources, there may not always be a one-for-one match.
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