A European binary strip (ebs) is simply a series of European Binary options, all with the same strike but each with a different expiry date.
Why buy a European binary strip?
Each underlying European binary is simply a speculation on the level of the spot on a specific date, in this case, the expiry date. If you speculate correctly, you receive a predefined amount of money. If you speculate wrongly, your maximum loss is the premium.
Pricing a European binary strip in SDX Commodities & Energy
When you price a European binary strip in the system:
The system uses the same strike for each underlying instrument.
Once you have defined the instrument, you can see the expiry date, settlement date, payout, etc., for each underlying instrument in the Expiry Dates & Rates window which you access by clicking the Expiry Dates & Rates button in the Single Option page or the Expiry Details button in the Portfolio page. In this page, for each instrument that has not yet expired, you can also edit the expiration date, settlement date, the payout, the ATMF vol and the futures as required.
As well as displaying a total market price as a % for the entire notional of the European binary strip itself (in the Results area), SD also shows the market price as a % for each individual instrument. You see this in the Expiry Dates & Rates window.
The Solver is supported. In the Single Option page you can solve for the strike that will give the defined market premium. In the Portfolio page you can solve for the single strike that will give you a defined market premium for the entire portfolio.