SAN MATEO, Calif. (HedgeWorld.com)–Some of HedgeStreet Inc.’s most popular binary contracts just got upsized.
What used to be a $10 spot contract for crude oil now trades in a $100 contract size. Similarly HedgeStreet also launched new $100 weekly futures in gold, silver, crude, gasoline and euro/dollar and dollar/yen currency pairs.
Bill McIntosh, vice president of marketing for HedgeStreet, said the changes were based on feedback from HedgeStreet users. Those users include a cross section of the investment community, with both experienced and inexperienced futures traders. Mr. McIntosh said the contract size changes reflect the growth of the trading system and increasing volume.
Ursula Burger, cofounder of HedgeStreet and the firm’s vice president for corporate communications and administration, said HedgeStreet users were trading a lot of $10 contracts, and so it made sense to increase the contract size so they could get more bang for their bucks, so to speak.
“With the $10 contracts, people were trading 20, 30 or 40 of them,” Ms. Burger said. “Rather than trading that many, we decided to do a $100 contract.”
The new $100 spot crude oil binary contract replaces the old $10 contract. The new $100 weekly futures in gold, silver, crude, gas and the two currency pairs replace HedgeStreet’s old monthly capped futures contracts priced between $30 and $50. HedgeStreet also adopted a $100 payout for its binary non-farm payroll contracts, and added strikes on the lower end to account for changing market conditions and the possibility of a slower job market, company officials said in a news release.
And HedgeStreet simplified other fee structures. Each in and out trade will now cost 1% of the total contract volume, or 10 cents for a $10 contract and $1 for a $100 contract. The old 30-cent per contract settlement fees have been dropped. HedgeStreet still allows new members to trade free for 30 days.
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