Nadex Announces New Strikes and Adjusted Strike Widths

This week, Nadex announced some meaningful changes they were making to their binary contracts. Before we get into that, who is Nadex? Nadex is the North American Derivatives Exchange is based out of Chicago and is regulated by the U.S. Futures Trading Commission (CFTC). Nadex allows traders to trade binaries and spreads on foreign exchange (Forex) markets, U.S. and International Stock Indices, and Commodities, like gold and oil. Trades can be opened and closed before expiration. NADEX is an exchange so it is not trading against you.

Now that you are familiar with who Nadex is, let’s talk about what they announced. Nadex recently announced that they added more strikes and optimized strike widths in the intraday binary options across all of their US Equity Indices and major FX pairs. This is great news for traders! More strike prices means more trading opportunities as when the market makes a larger move, there is more likely to be a strike available to find a trade. In addition, the adjusted strike widths allow for it to be easier to find a strike with the premium you are looking for, in order to place a trade that lines up with your trading system.

The markets that are affected by this change include the following:

• US Equity Indices:
• Wall Street 30
• US 500
• US tech 100
• US SmallCap 2000
•  
• Forex Pairs:
• AUD/USD
• EUR/USD
• USD/CHF
• USD/JPY
•  

The following chart shows the changes that were made:
To view image click HERE

The changes in the amount and width of the strikes will make it more likely that there will be an OTM, ATM or ITM trade that can be placed on a variety of trading systems. When you get a signal on your charts, there will be a better chance that you’ll be able to find a strike with an acceptable premium and distance in order to place a trade. The goal of the adjustments is to reduce searching and hoping that there will be a contract which meets your requirements for a trade, only to find that there isn’t a contract available. Therefore, more strikes and better widths will ensure better premiums are available to allow you to be able to execute your trades consistently with your system.

Nadex continues to make enhancements to their product offering and platform. To learn more about trading binaries on Nadex, go to www.apexinvesting.com, a service provided by Darrell Martin. Apex Investing Institute offers free education, and free access to the Nadex Binary and Spread Scanner Analyzers. Member traders are invited to trade in the rooms, take advantage of trade signal services, have key indicators and access the Apex Forum. The forum content is updated daily and includes over 7000 members. In a supportive learning community of seasoned as well as up and coming traders, traders of all levels learn how to trade Nadex binaries and spreads in depth, as well as futures, forex, stock and options, and gain an edge for successful trading overall.