Box-Options

Box-Options are an innovative financial product that give you a simple method of entering your market predictions graphically on a chart. There is no requirement to understand or compute complex option formulas. Using Box-Options, you can create your own tailor-made financial products and capitalise on your personal assessment of expected market volatility and direction.

The Box-Option product gives you the opportunity to realise profit if you correctly assess market trends, whilst limiting losses should the prediction fail to come true.

You simply draw a box on the chart area and select the amount you would like to invest as premium. marketindex calculates the payout automatically for either a hit or miss box and displays this on the ticket before the trade is confirmed.

The calculation of the payout amount in case of success is based on complex option price theory and is primarily influenced by the level of volatility expected in the market based on past volatility calculations. If your prediction is wrong, the payout on the expiry date will be nil. Unlike conventional options, Box-Options allow you to exploit intraday market movements. The relevant price for determining a "hit" or "miss" is the mid market price of the respective marketindex underlying, which makes the size of the market making spread irrelevant.

The minimum box premium is £1.