Tick, Tick, Tick: Changes For US Tech 100 at Nadex (Emini NASDAQ 100 Futures)

Effective immediately, the tick value has been improved for the US Tech 100 at Nadex. All instruments at Nadex, which stands for the North American Derivative Exchange, are derivatives of underlying markets. The US Tech 100 is based on the price of the Emini NASDAQ 100 Futures contracts, NQFC and is traded on the Chicago Mercantile Exchange (CME). Previously, US Tech 100 at Nadex ticked at 1. It now ticks at 0.1 at a value of $1.00 a tick. NQ (Futures) ticks in .25 at a value of $5.00 a tick.

The image below shows that each 0.1 tick is worth one dollar.

To view larger image click HERE.

The top arrow shows that the ceiling is 4360.0. The bid or the sell price on the ticket is currently 4359.7 which is three ticks away from the ceiling. This information is shown at the second arrow. The bottom arrow points out that the max loss is only $3.00 which corresponds to the sell price being three ticks away from the ceiling. Thus you can see that each tick of 0.1 is worth $1.00.

2:1 Ratio
This improvement makes the ratio between NQ and Nadex’s US Tech 100 even more attractive at 2:1. With NQ ticking at .25 with a value of $5 a tick, this translates to $20 a point. US Tech 100 is ticking at 0.1 making its value $10 a point. Therefore, the ratio is 2:1. This is valuable information should you want to use US Tech for any hedging positions against your NQ positions.

Capped Risk
When trading, you can literally have a 10 or 20 tick risk on a Futures trade using the spreads to hedge it and have unlimited upside with no time limit. That is when it gets fun! You can buy the Future and sell a spread or vise versa. Your ratio is better and your risk is capped on the Nadex spread. It is not capped on a Futures contract. Even if you have placed a stop while trading futures and a flash crash happens, it can gap past your order and there is no cap on your risk.

Video
If this strategy is something that interests you and you’d like to study it more in-depth, click on the link below. This will connect you to a webinar that explains in detail how to hedge on either Futures or Forex with Nadex Spreads.
Duration: 2 hours

Apex Webinar Link

To learn about other ways to trade, visit www.apexinvesting.com