Frequently Asked Questions
How Binary bets work? (Back)
Binary bets (options) allow an investor to place a bet (trade) on whether an
equity index or exchange rate will close above or below a given level on a given
date.
For example, supposing Mr “A” pays ₦ 40 to place a bet “I agree the Nigeria
Stock Exchange – All share index will close above 28,000 at close of business 19
April 2010”. And Mr “B” pays ₦ 60 to place a bet “I agree the Nigeria Stock
Exchange – All share index will close below 28,000 at close of business 19 April
2010”.
The customer with the winning bet will receive the notional amount of the
contract (bet), which is ₦ 100. The Notional amount of this contract is fixed at
₦ 100.
Mr “A”s fees + Mr “B”s fees = Notional amount of
contract
Which instruments can I trade on monchange?
(Back)
On Monchange, you can place bets on the closing price of the following equity
indexes:-
Nigerian Stock Exchange (NSE) All Share Index
Ghana Stock Exchange (GSE) All Share Index
Nairobi Stock Exchange (NSE) 20 Share Index
And the following currency rates:-
USD/Naira rate
USD/Cedi rate
EUR/Naira rate
EUR/Cedi rate
GBP/Naira rate
GBP/Cedi rate
How does daily options contract fit into my
investment portfolio? (Back)
Hedging: In economies like Ghana and Nigeria, where it could
take a few days to find a buyer or seller on the stock exchange, it is a common
occurrence that the market may move adversely before the trade can be executed.
For example, on day 1 the index is trading at 100, an investor places an order
to sell equities with a value of Cedi 100,000 and sells 1000
DOC’s “I agree the GSE Index will close above 100” for Cedi 5,800.
At close of business (cob) on day 1, the GSE index closes at 90.
Due to a lack of liquidity in the equities market on day 1, the investor’s
equity sale is executed at a value of Cedi 80,000 on day 2. Without the DOC
contract, the investor would have sustained a loss of Cedi 20,000, but due to
the investor executing a sale of 1000 DOC’s simultaneously, the loss is reduced
to Naira 14,200.
What you will need to register on Monchange?
(Back)
To register on Monchange, you need a valid email address. Register online, fund
your account and you can start placing trades.
What is an equity index?
(Back)
An equity index is a measure of the value of a selected group of stocks on a stock market.
How can I fund my account? (Back)
You can fund your account by paying cash, credit/ debit card payment or
electronic fund transfer into monchange’s bank account in your country.
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Funding your monchange account
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Customer’s Location
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Credit / Debit Card
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Cash
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Cheque
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Bank Transfer
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Africa
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No
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Yes
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Soon
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Yes
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Europe
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Yes
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Yes
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Yes
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Yes
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Monchange Bank Account Details
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Customer’s
Location
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Sort code
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Account Number
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Ghana
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Ecobank
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Nigeria
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Ecobank, Chevron drive, Ajah, Lagos,
Nigeria
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England, Ghana and Nigeria (Cash): After paying into monchange’s bank
account, log unto the monchange web site , and within the “Top up your
account” section enter the payment reference (given to you by the cashier at the
bank), and the amount you paid at the bank. Please keep all your receipts from
the bank.
England, Ghana and Nigeria (Electronic Fund Transfer):
Within the top up section of the monchange screen, enter the amount you will be
transferring by electronic fund transfer, this process will also generate a
payment reference. Include the generated payment reference with your fund
transfer, so your funds can be allocated to your account.
England, Ghana and Nigeria (Cheque):
You can post a cheque drawn on your own bank account in the same name as your
monchange account. Make the cheque payable to Monchange, at the back of the
cheque, please write your name, address, and password.
Monchange
9 Scorton Avenue, Perivale, Middlesex UB6 8LA
When should I buy a binary option based on an
equity index? (Back)
You should buy an equity index contract if you believe an equity index will
close higher than the level (strike price) as at the close of business date
specified on the contract.
For example using the NSE Index traded contract as an example, it states: “I
agree the NSE Index will close above 6750 as at close of business 15th of April
2012”. If this is your view, then you must buy the contract.
You will lose your premium (the amount you paid to buy the contract), if the
level the NSE Index closes is less than 6750, and receive the notional amount of
the contract if the NSE index closes at a level greater than 6750.
If my bet is correct, how much do I get paid when
I buy an equity index contract? (Back)
If you bought an equity index contract, and the index closes above the strike
price, then you will receive for each contract purchased the notional amount of
the contract. If the index closes below the strike price, you will lose the
premium paid.
Positive outcome = Notional amount
Negative outcome = - Premium
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Name of Contract
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Notional amount per contract
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GSE All-Share Index
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Cedi 10
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GSE All-Share Index
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£ 10
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GSE All-Share Index
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€ 10
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NSE Equity Index
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£ 10
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NSE Equity Index
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€ 10
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NSE Equity Index
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₦ 100
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When should I sell an equity index contract? (Back)
You should sell an equity index contract if you believe an equity index will
close lower than the level (strike price) as at the close of business date
specified on the contract.
For example using the GSE All-Share Index traded contract as an example, it
states: “I agree the GSE All-Share Index will close below 6750 as at close of
business 15th of April 2009”. If this is your view, then you must sell the
contract.
You will receive the notional amount, if the level the GSE All-Share Index
closes is less than 6750. If the GSE All-Share Index closes at a level greater
than 6750, you will lose the premium paid.
Positive outcome = Notional amount
Negative outcome = - Premium
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Name of Contract
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Notional amount per contract
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GSE All-Share Index
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Cedi 10
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GSE All-Share Index
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£ 10
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GSE All-Share Index
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€ 10
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NSE Equity Index
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£ 10
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NSE Equity Index
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€ 10
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NSE Equity Index
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₦ 100
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How can I withdraw my winnings?
(Back)
To withdraw winnings, log onto monchange, and in the “withdraw cash” section,
enter the amount you want paid into your bank account. Due to money laundry
regulations, Monchange can only pay directly into a bank account in the name of
the customer, which was given when the account was opened.
Which equity index based binary options are traded on Monchange?
(Back)
Binary options on equity indices on Monchange are not sponsored, endorsed, sold
or promoted by the Nigeria Stock Exchange, Ghana Stock Exchange and Nairobi
Stock Exchange.
Ghana Stock Exchange – All share index is a registered trade mark of the Ghana
Stock Exchange. Nairobi Stock Exchange – 20 Share index is a registered trade
mark of the Nairobi Stock Exchange. Nigeria Stock Exchange – All Share index is
a registered trade mark of the Nigeria Stock Exchange.
When should I buy a foreign exchange index
contract? (Back)
You should buy a foreign exchange index contract if you believe the foreign
exchange rate will close higher than the level (strike price) as at the close of
business date specified on the contract.
For example using the British Sterling to Ghanaian Cedi foreign exchange
contract as an example, it states: “I agree the British Sterling will strengthen
more than £1 to ₵2.50 by cob 14/04/2009”. If this is your view, then you must
buy the contract.
You will lose your premium (the amount you paid to buy the contract), if the
foreign exchange rate closes at lower than ₵2.50, and receive a positive pay out
if the NSE index closes at a level higher than ₵2.50.
How do I complain about non satisfactory
service? (Back)
If you are not happy with any aspect of our service, in the first instance
please contact our customer service at
info@monchange.com within 12 weeks of the transaction in question. In the
unlikely event that you are not satisfied with our decision with regard to your
complaint, you can refer the complaint to an independent adjudicator within 6
months of our final response, at Independent Betting Adjudication Service Ltd
(IBAS).
Contact Details
IBAS
PO Box 62639
LONDON EC3P 3AS
Email:
adjudication@ibas-uk.co.uk Website:
www.ibas-uk.com
Telephone: +44 (0) 207 347 5883