What is a Deal Ticket? | Definition and Examples


A deal ticket is a record of all terms and conditions and other relevant information of the trading agreement. A deal ticket and a trading ticket are synonymous with each other. Once you indulge in trading different financial assets, you can easily generate your trading ticket. 

A deal ticket includes all the records of your trading, which are useful for various purposes. The definition of deal tickets will help you get a clear picture of this term.

Deal ticket in a nutshell

  • A deal ticket is a record of trading terms and conditions.
  • Essential for internal control, tax purposes, and transaction history organization.
  • Includes transaction type, security name, order details, quantity, parties involved, and more.
  • Binary Options Deal Ticket: In binary options, it confirms trade details, including asset, option type, strike price, expiry time, investment amount, and payout.

What are the key elements of a deal ticket?

The key elements of a deal ticket are the price, the trading volume, the parties involved in the transaction, and the time of execution. Every listed company uses deal tickets for internal control and the organization of transaction history. They can either keep an electronic record of a deal ticket or maintain it in its physical form.

The companies then transmit this information to the entities concerned. A trading ticket or a deal take is essential for internal recording and tax purposes. Companies also use them for analysis through various charting software.

All online traders are familiar with the meaning of deal tickets. If you get into trading, you must fill in the information on a deal ticket yourself. While signing up on an online trading platform, you might be asked to fill in the details on the ticket. All brokers have a slightly different trading screen. However, the information you need to fill in is the same everywhere.

The information in the deal ticket is as follows:

  • Transaction type
  • Name of security
  • Order type
  • Duration of order
  • Order Quantity
  • Order price and commission
  • Time of the transaction
  • Date of the transaction
  • Parties involved in the transaction

Example: How does a deal ticket look like?

The look of a deal ticket differs from broker to broker, but it’s always kind of the same look and feel. Suppose you start trading on any online trading platform:

  • Your broker asks you to enter the type of transaction you are undertaking before executing any specific trade. 
  • The broker will also require you to enter the name of the security and the type of order you are placing. 
  • It can be a buy-stop order or a sell-stop order. 
  • Now, you can enter the order duration and the quantity of the shares or contracts you are willing to buy or sell. Filling out the commission part of the deal ticket is the broker’s responsibility. It includes the fee you must pay to the broker to execute the trade.

What is a deal ticket in Binary Options trading?

A deal ticket in binary options trading is a document or electronic record that outlines the details of a specific trade. It serves as a confirmation and record of the transaction between the trader and the broker. The information typically included in a deal ticket may encompass:

  • Asset Details: Specifies the underlying asset being traded, such as a currency pair, commodity, index, or stock.
  • Option Type: Indicates whether the trader is entering a call option (betting on an increase in the asset’s price) or a put option (betting on a decrease in the asset’s price).
  • Strike Price: The predetermined price at which the binary option will be settled if it is in-the-money at expiration.
  • Expiry Time: The specified time and date when the binary option expires. The trade outcome is determined based on the asset’s price at this particular moment.
  • Investment Amount: The amount of money the trader is investing in the binary option.
  • Payout/Return: The potential profit or return that the trader can receive if the binary option expires in-the-money. This is usually expressed as a percentage of the invested amount.
  • Transaction ID or Reference Number: A unique identifier for the trade that can be used for tracking and reference.

Why is a deal ticket crucial in trading?

A deal ticket is a very crucial term when it comes to trading. It is one of the most important documents for maintaining internal records and taxation purposes. All taxation entities use deal tickets to the amount of tax payable by a trader. It records all the trader’s transactions and other related information. A deal ticket will have every possible information that an entity would need to calculate your earnings or for taxation. 

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About the author

Marc Van Sittert
Marc Van Sittert is an experienced Binary Options Trader and coach who is originally from South Africa. He started his career in 2014 by trading old-school Binary Options online. His main focus is on short-term contracts with 60-second trades.

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