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What markets can I trade on Nadex? You can view the range of stock indices , forex , commodities and economic events we offer under Markets on the menu above. The mission of the CFTC is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and financially sound futures and option markets.
What is the difference between an exchange, broker, and market maker? Nadex is an exchange. We match buyers to sellers, ensure accurate and fair prices, and make sure all trades are settled transparently and correctly. An exchange does not engage in any trading, either with its own members or in another venue.
As a Nadex member, you send your orders directly to the exchange and do not need a broker. To do so is a clear conflict of interest. A market maker is an institution not the exchange that agrees to provide liquidity by taking the other side of large numbers of individual trades.
They help ensure that individual traders get filled on their orders without having to wait for another individual to take the other side. They agree to take on the risk with lowered trading fees in exchange for the opportunity to profit. How do I open a Nadex account? You can open a Nadex account online for free, in less than five minutes, 24 hours a day. You can also open an account using our Android app. Can I try the Nadex platform before opening an account?
You can open a Demo account for free to test drive the Nadex platform. After you open a live acccount, your demo will remain available for you to use for practice and strategy testing. How do I set up an entity account for a corporation, LLC, partnership, or trust? How do I deposit funds into my Nadex account?
How do I withdraw funds from my Nadex account? How do I transfer funds from a brokerage account to Nadex? You can send funds by wire transfer. Click the Deposit Funds button at the top left of the platform and follow the instructions.
Where are my funds held? BMO Harris, headquartered in Chicago, is a leader in providing financial services to the futures industry. BMO Harris is an integrated financial service organization providing more than one million personal, business and corporate clients with banking, lending, investing and wealth management solutions.
Fifth Third provides financial services and solutions for more than 1. What type of trading platforms do you offer? Which browsers does Nadex support? See our system requirements page for more information.
What mobile trading apps do you offer? We have a full-featured platform app for Android. We also offer a new iPhone app for trading Nadex Spreads. How do I download a mobile app? Visit our Nadex Mobile Trading page and click on the app store for your device.
You can open an account directly from the mobile apps if you are not a Nadex member. Where are the charts located on the trading platform? Click on the chart icon to the right of any contract name to open a chart.
Click on the downward arrow to the right of the icon to see more options. The Nadex binary ladder chart is a powerful combination of charting and order placement, all from one window.
What are your account and trading fees? How much do I need to fund my account to trade on Nadex? The easiest and fastest way is using a debit card from your bank checking account. How much am I risking when I make a trade? All Nadex contracts have strictly limited risk. The maximum possible profit and loss are displayed on the order ticket before you confirm the trade. To open a trade, you have to have that maximum risk amount in your account as collateral.
Otherwise, the trade won't go through. You can never lose more than this amount on the trade. This policy also means you'll never get a margin call. Where can I learn how to use the platform? Under the Learning Center menu you will find our extensive and always-growing library of courses and trading examples. You can watch a minute video walkthrough of Nadex and our online platform.
Or sign up for one of our webinars where you can ask questions and watch real-time trading examples using the platform. What is a strike price? The strike price is the price you believe the market will go above or below at expiration. What do bid, offer, bid size, and offer size mean? As the exchange, Nadex executes the transaction. The bid and offer size show the number of working orders at that moment from traders who want to buy or sell.
Please note that even when the bid or offer size is zero, you will often still be able to make a trade. Once you make your own bid or offer, it will appear in the bid or offer size total and other traders are free to accept it. What is the difference between a working order and an open position? A working order is a request you have sent to the exchange: When you place the order, it will show up in the Working Order window.
You are not in the market at this point, but waiting for your order to be filled. Once a working order is filled, it becomes an open position and will appear in the Open Position window. As the market moves up and down, the value of your position will go up and down as well. At expiration, your open position will close automatically at the settlement price. With a binary option, that will be either zero or At this point, it is considered a closed position and will move to your order history.
You can also choose to close your position early. What is the Settlement Value? For binary options, the settlement value is the payout you receive at expiration or exit. If you hold the binary until expiration, this value is either , if the contract expires in the money, or zero if it does not.
You can also can also close a position before expiration, either to take profits or cut losses. In that case, the settlement value is the price at which you exit. Spreads have a price floor and ceiling, so the payout will vary based on where the market is at expiration time. How is the expiration value calculated? Nadex uses different calculation procedures for normal and highly active markets, to ensure an accurate settlement outcome.
If this would result in a non-integer number of prices, we will round down to the nearest integer the number of prices to be removed.
We then average the remaining midpoint prices and round to one decimal point past the precision of the underlying market. We then average the remaining trade prices and round to one decimal point past the precision of the underlying market except for the Wall Street 30 which will be rounded to the point of precision of the underlying market. If it takes more than ten seconds to collect 10 or more midpoints in the data set, Nadex calculates the expiration values for spot FX as follows:.
If it takes more than ten seconds to collect 25 or more trades in the data set, Nadex uses the following process to calculate the expiration value:. The market prices we use to calculate the expiration values for index and commodities contracts are obtained through a data feed from Reuters.
If Reuters is unavailable, we may obtain market pricing data through Bloomberg or another data provider that we deem appropriate under the circumstances. The market prices we use to calculate the expiration values for Forex contracts are obtained through a proprietary data feed "NadexFX" comprised of quotes from well-known banking institutions.
If NadexFX is unavailable, we may obtain market pricing data through Bloomberg or another data provider that we deem appropriate under the circumstances. What is the difference between the futures market and the cash or spot market? In simple terms, futures contracts are based on the expected future price of a product.
The cash or spot price is the price people are currently paying, to exchange euros for yen, for example. Some products, like gold, have both futures and spot markets. Nadex binary options on forex pairs are based on the spot price. Binaries on commodities and stock indices are based on their futures markets.
How do I liquidate a contract when there is no willing interest? However, if you place an order for a price far from the current price, you may find no one willing to take the other side, at least not right away. In many cases, you can leave the working order on and wait. Nadex has at least two large institutional market makers to provide liquidity to the markets even when there are few individual or smaller traders active.