NADEX Binary options are fast becoming the only choice for US binary options traders. This is a how to guide for trading binary on this unique platform.
How to Trade Nadex Binary Options in 7 Steps
- Log on to NADEX platform. Sign up is simple and free, minimum deposit is low at $250. You will need to to call in to verify your account and get approval for trading.
- Choose an asset. Use the Asset Finder tool in the left sidebar window. Assets are listed by asset class, asset and expiry.
- Choose expiry. After clicking on your chosen asset class and asset expiry information will appear, click on your target expiry to call up available strike prices.
- Choose strike. Strike prices are listed in the main window. The most heavily traded strikes are the ones closest to the assets current price. Clicking on a strike price will call up the order ticket.
- Build your ticket. Order tickets list expiry time, strike price, bid/offer prices and the depth of the market. You choose buy/sell, the number of lots to trade and the price you are willing to pay.
- Place your order. Click the Place Order button and confirm to place your order. It will stay open until you cancel, the option expires or you get your fill.
- Monitor your trade. After your order is filled monitor your trade. You can either hold it until expiration and get full payout or sell it at any time you wish in order to cut losses or capture profits.
Learn To Trade NADEX Binary Options
This is a how to guide for binary options trading on the NADEX platform. If you don’t know anything about NADEX, please read this NADEX Review first. This is not a strategy article, system article or any kind of scam. We here at BOTS recognize the growing need of education for this platform as it is fast becoming the only choice US traders. On the surface it is a little more complicated than spot binary in the European style but once you get the hang of how it works it gets a lot easier. The most important thing to remember is this; with European style binary options the price you pay is what you choose, it stays the same, the strike prices is what changes with the change in price of the underlying asset. In NADEX the strike prices are static and the price you pay is what changes as the price of the asset moves up and down. The difference with NADEX makes for two different approaches; you can simply try to buy low and sell high, or you can try to buy when the asset price is below the strike and hold the option until expiry for your binary pay out.
A quick reminder. NADEX binary options are prices in the 0-100 method. This means that when you buy an option its price will be between $0 and $100 depending on the price of the underlying asset. If you buy an option for $55 and hold it to expiration, and it closes in the money, you get $100. If you hold it and closes out of the money you get $0. If you choose to sell it before expiration you will get whatever the market price is at that time.
Another reminder. With NADEX you can buy and sell to open, unlike EU style where you buy a call or buy a put depending on your analysis. At NADEX a buy to open means you are bullish, its like a call. Your account is charged, if you lose you lose the price you paid, if you win you receive $100 per lot. If you are bearish you sell to open. This creates a credit in your account. If the option closes out of the money you keep the credit, if it doesn’t you pay $100.
A 7 Steps Guide For Trading NADEX Binary Options
Step 1: Step one is to log on to the platform. The first thing you will see will most likely be some messages, all you have to do is click on them to make them disappear, after you read them of course. At that point you will be left with the home screen of the trading platform. On the left hand side you will see the asset/strike finder. Use this to scroll through available assets along with their listed expirations. This screen is set up to automatically show the most active binary with daily expiry but you can change this later if you want. Notice how the bid and offers for some options are highlighted, these are live trades as they happen. Blue is for buy, red is for sell. Open trades you make are listed at the bottom of the screen.
Step 2 : Step 2 is choosing an asset. Look to the left sidebar. It lists binary options and spreads for forex, indices, commodities and a few other choices. I choose forex binary for this example. When clicked forex binary provides another drop down with all the available pairs.
Step 3 : Step three is picking your expiry. What you need to do here is choose the expiry time for the asset you want to trade in finder window and then click on it. When you click on it all the available strikes for that asset with that expiry are shown in the main window.
Step 4 : Step 4 is choosing a strike price. Once you’ve pulled up all the strikes for the expiry you want you can choose which one is the best. This screen shows the actively traded strikes, time to expiration, strike prices, which ones are ITM and OTM and what the bid/offers are for each strike. It is recommended to choose a more actively traded strike rather than a less actively traded one in order to ensure a fill, if no one wants to trade the option of your choice then you may not get it. Once you’ve decided the strike you want to trade click on it for the next step.
Step 6 : The last step is placing your order. On the order ticket choose the order type, either buy or sell. Then choose the size of the trade, this is done in lots. If the options costs $65 and you want to trade $500 then you will want to choose 7 lots ($455) since there are no partial lots. By choosing price you are able to control to some extent the price you pay, the caveat is that if your price is too low you may not get your option. When the ticket is filled out click “Place Order”, confirm and you are set.
Step 7 : Monitoring your trade is the last step. The beauty of NADEX is that any option can be closed at any time, regardless of expiry. There are no windows in which a close-now feature will work. If the asset moves into the money and your option shows a profit you can close it so long as you can get a fill on your ticket. Likewise if the asset moves in the wrong direction. You can sell at any time in order to cut your losses, the only catch being you have to get a fill. The same is true if you sell to open. You can buy that position back at any time so long as you are willing to pay the bid prices.
Below is a video by NADEX: how to place a trade
Trading with NADEX – Take It From Here!
As you can see, once you get familiar with the platform and its inner workings trading becomes much easier. The key is expiry and strike price, and mostly expiry so I suggest becoming very familiar with how that works. My tip; if you know which strike and expiry you are targeting you can call up an order ticket and get it ready, that way you will experience the least amount of lag time between when you spot your signal and when you place your order. After that all you have to do is watch your charts, identify your signals and take your entries.
Strategy: You can use any approved binary options strategy for NADEX, the technical signals are the same, the only difference is in how the platform operates. You can also check out our tips for trading NADEX binary options on Forums. To help you get comfortable with it NADEX supports a totally free demo platform with no time or trade limits.