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Moneyness can also be used when conceptualizing the value of Nadex binary options and spread options. To determine the moneyness of a Nadex binary, traders look at the price of the binary.
The purpose of this article is to show one comparison between traditional options and binary options. With traditional options, you may hear the term intrinsic value used from time to time.
The table below shows the binary-to-decimal-conversion of the value of 500: Thus, 500 10 = 111110100 2. Or, on a digit by digit basis in base 2: 500 = (256 + 128 + 64 + 32 + 16 + 0 + 4 + 0 + 0) There ...