Switzerland based broker Dukascopy Group has announced today that two of its global branches, Dukascopy Bank and Dukascopy Europe, are extending their range of instruments available for trading with a new type of binary option – Daily Stock Option. DSO allow to trade binaries of a particular stock based on the price move during the next trading session instead of the traditional times frames of 5 minutes, 30 minutes, and hour and so forth.
The stocks available for trading on the new instrument are arranged by continent, country and exchange, covering some of the most famous company names around the world.
Like other types of binary options, the only thing that determines the outcome of Call/Put DSO binaries is the relation of two prices – the trading session opening price of the underlying instrument on the corresponding stock exchange and the closing price of the underlying instrument on the corresponding stock exchange at the end of the same trading session.
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All DSO are one trading session long. Meaning that the duration of the option is defined by the trading hours of the exchange, where the instrument is traded. Opening price of the DSO order is the price of the underlying instrument on trading session opening; closing price of the DSO order is the price of the underlying instrument on the closing of the same trading session.
In case of a correct forecast, the option is In-the-money and the trader receives back the paid premium plus an amount equals to the applicable payout ratio multiplied by the paid premium. The base payout rate is 70% at Dukascopy; but it may decrease up to 50% by 5% increments, the broker explained. The payout rate applicable to every specific order is fixed when the order gets activated and cannot change until expiration, irrespective of the updates happening to base payout rate applicable for new orders.