You may have noticed that on our two trading platforms for Binary Options (BDSwiss Binary) and CFDs (BDSwiss Forex) there are some underlying assets with different prices. Depending on the underlying asset, there are different reasons why this may occur.
1. Spread vs. Middle price
In BDSwiss Forex two prices are always stated. The Buy price is the price at which you buy a CFD and the Sell price is the price at which you sell a CFD. The difference between those two prices is called spread. Binary Options, however, are opened and evaluated on the basis of a single price. This price is called the middle price, and is the average of the Buy and Sell prices of the underlying asset.
__This is particularly true for all currency pairs, commodities and stocks!__
2. Spot markets vs. Future markets
Especially with indices, significant deviations can often arise, if you do not compare the right prices with eachother. For example, the prices for indices on BDSwiss Forex are based on corresponding futures market, whereas with BDSwiss Binary the futures market must be explicitly selected.
Indices represent a kind of derivative in which the middle price is much less volatile than the Buy and Sell prices. For this reason prices for indices with Binary Options are based on the Sell price.
__If you are comparing prices, please make sure that on both trading platforms you are looking at the same underlying asset with the same expiration month!__
3. Rounding up or down
Depending on specified points the price of CFDs will be rounded up or down. For example, the actual DAX future price is listed as 9673.75 on BDSwiss Binary and 9674 on BDSwiss Forex.
__This leads to small price differences for CFDs!__
4. Expiry month is not the same as contract month
With BDSwiss Binary, many underlying assets are listed with an abbreviation for a specific month. This abbreviation is always related to the contract month and not its expiration. So, for example, the WTI_April 2016 contract can expire on 18.03.2016, on the other hand the Dax Future March 2016 contract expires on 31.03.2016.
__Pay particular interest by commodities and indices if the contract relates to the expiry month or the contract month!__