IP Library › Patent Application 18753431
Patent Application
App. No. 18/753,431

BINARY OPTIONS ON SELECTED INDICES

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Quick Facts
Patent No.
US None
App. No.
18/753,431
Abstract

Various embodiments comprise systems, methods, and computer-readable media for configuring and trading binary options. A first index may be configured, e.g., based on a portfolio configured by a user. One or more second indices may be determined. A binary option may pay out if the first index outperforms the one or more second indices, e.g., over a period of time. The binary option may be traded in the primary and secondary markets.

Claims (13)

1 . A method comprising:

receiving, by at least one processor of at least one computer, from a first user a specification of a first index comprising a first portfolio, the specification defining one or more trading products in the first portfolio;

determining, by the at least one processor, at least one second index each comprising a respective at least one second portfolio, each at least one second portfolio comprising at least one trading product;

determining, by the at least one processor, a period of time defining a start time and an end time;

causing, by the at least one processor, to be output to the first user, at a first electronic display device associated with the first user, indicia of a first binary option associated with the first index, the at least one second index, and the period of time, the indicia comprising information about the first index, information about the at least one second index, and the end time;

before the end time, receiving, by the at least one processor, a request to purchase a quantity of the first binary option,

wherein at a time before the end time, the first binary option is defined to settle at a future time to one of two possible values comprising a first final value and a second final value;

before the end time, transacting a first trade comprising a purchase and sale of the quantity of the first binary option;

determining, by the at least one processor, a first rate of return for the first index by comparing a value of the first index at the end time to a value of the first index at the start time;

determining, by the at least one processor, at least one second rate of return for the at least one second index by comparing, for each of the at least one second index, a value of the respective second index at the end time to a value of the respective second index at the start time;

determining, by the at least one processor, a final value of the first binary option, in which determining the final value of the first binary option comprises one of:

determining that the first binary option has a value equal to the first final value responsive to determining that the first rate of return for the first index is one of (a) higher than and (b) higher than or equal to each of the at least one second rate of return for the at least one second index; and

determining that the first binary option has a value equal to the second final value responsive to determining that the first rate of return for the first index is one of (a) less than and (b) less than or equal to each of the at least one second rate of return for the at least one second index.