Welcome to our Nadex review website. Throughout this article we will be looking into what Nadex.com has to offer and we will also be investigating whether Nadex is a scam or if in fact it is a great Binary Option Trading platform to trade from. If you have your own Nadex review or scam story then please share it at the bottom of the article for others to read.
Nadex exchange is based in Chicago and lists fantastic financial products on a risk basis that is strictly limited. Trade contracts are based on spot forex, commodity futures, stock index futures and economic occurrences in an environment that is transparent and regulated.
IG Group gives Nadex full capitalization and backing. This group is a United Kingdom FTSE 250 company with a core business of financial services and it was established about forty years ago.
More about IG Group
This company is the leading specialist in the world when it comes to financial derivatives. It's traded publicly on the London Stock Exchange and holds a market capitalization as of January 2011 of $2.7bn.
The headquarters is in London, but there are other offices in the United States, South Africa, Singapore, Australia and throughout Europe. The group boasts an international network that is growing constantly. This growth has been built primarily on the commitment and reputation of the Group's trading technology, transparency and competitive pricing. It's regulated fully by the FSA or Financial Services Authority.
Nadex trading Review
This exchange is offering binary trading options and spreads for many different markets, which includes stock indices, forex, commodities and economic events like the decisions made for unemployment rate and numbers. The market for spot forex is utilized as the underlying market for the forex derivatives. A similar futures market is used for commodities and indices derivatives.
When you are a member of this exchange, you have the opportunity to enjoy free usage of a powerful DMA trading platform where you will be allowed to place direct orders on the exchange. This platform is loaded with features that you can use easily for advanced trading. Some of the features include:
Direct Market Access - Members can log in and place direct orders on the exchange.
Streaming data - The trading data is streamed in real-time directly to your platform.
Browser-based - Absolutely no download or installation and log in can be done from anywhere.
Charts - There are real-time charts for all the trading instruments.
Customizable - Will only see the functions and data that you need based on personal settings.
Reuters News – Can get specific news for the market at the touch of a button.
Free platform– There will be no charges to get market data or use the platform.
Binary options are available for intra-day daily and weekly trading, but you have to be a resident of the US to open a Nadex account. There is no minimal deposit, but it's recommended to start with a capital of no less than $1000. It is possible to sign up to get a free demo account without a set expiry date. This can give you a good amount of opportunity to understand the platform and experiment with the trading strategies.
Nadex only offers limit orders, meaning that they will be filled at the price specified or even better. In case you enter an existing offer or bid price at the time when you are placing an order, this needs to be filled in short order. If not, you could opt for pending orders with the expectation that they might fill at a good price.
At present, the opened orders will be displayed in the window for Open Positions, whilst unfilled orders will be shown in the window for Working Orders. All the orders will end at the expiration time for the contract. It is possible to close a position any time prior to the expiration, by placing a similar order in the other direction. This can be done easily by clicking on the contract name that is inside the window for Open Positions. The Ticket window will open up with the fields having pre-filled data. You can close an order immediately, by submitting it for the existing offer or bid price. It's also possible to set a limit for pending order in the other direction, ultimately making a stop-loss.
Whenever you are exercising an option, this will subject you to the offer/bid spread before the expiration time. Additionally, you will be charged a fee for the second order in the opposite position. This offer/bid spread will be the distinction between the price for Bid and Offer. Contracts can be purchased at the Offer price and then sold for the Bid price. A broker will keep the prices as commission which is the difference between them.
The binary options on Nadex exchange will be cited from 0 to 100. With the lower or higher price, you will have a greater probability that the price at the closing will be below or above the strike price. In cases where a binary option ends in-the-money at the expiration, the payout will be $100 less the fees. But, you will not be charged a fee when the options expires out-of-the-money.
Contracts for Spread
Spread contracts are also offered on Nadex. Similar to a binary option, the spread contract will pay out whenever the underlying security ends lower or higher than the purchase price. These contracts come with a lower and upper limit. The existing purchase price will be somewhere within these bounds and the overall profit or loss for virtually any transaction will be determined by the original purchase price.
In contrast to binary options, the spreads are not given on the wager for all-or-nothing. The profit or loss will be based on the variation between the expiration and the purchase price, up to the highest level of loss or profit as described by the contract for lower and upper bounds.
There are two types of spread contracts: the five narrow and the master spreads. For the forex contracts, master spread will range between 300 and 750 points. But, for narrow spreads on forex contracts this will subdivide the masters into five smaller spreads that would overlap and range between 100 to 250 points.
Overall, the spread contracts on Nadex exchange are identical to the spread bets provided by UK companies, with some exceptions. For one, Nadex spreads come with a clearly outlined ceiling and floor price, which put a limit on the overall profit and loss. Secondly, there are no stop losses for Nadex spreads. On the other hand, the spread bets are generally traded on margin using leverage and the products on Nadex are offered without leverage.
Thanks for reading our comprehensive Nadex review. We hope this has helped you decide if you want to trade on Nadex.com. We have found that Nadex is not a scam and is a sound trading platform. If you ahve your own Nadex review or scam story to share then please post if below and don't forget to rate this trading platform at the top of the article