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Nadex Forex Bull Spreads

  • #121
  • Nov 20, 2011 8:34am Nov 20, 2011 8:34am
Quoting kapital
Here is an example of having the opportunity to load up on contracts using high leverage with limited risk. The top and bottom options allow for the purchase of one contract for under $10 (buying the top one or selling the bottom one). That means if you wish to trade at $10/pip, you can do so by risking less that $100. You won't find that kind of leverage in spot forex these days.
How wide was the spread on those options ?
  • #122
  • Nov 20, 2011 9:04am Nov 20, 2011 9:04am
Quoting Traderlarry
How wide was the spread on those options ?

At the time, it was 3 pips. You can see it in the image I provided. The spreads are normally larger by a few pips during times of low liquidity (i.e. Asian session).
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #123
  • Nov 20, 2011 9:09am Nov 20, 2011 9:09am
Quoting kapital
At the time, it was 3 pips. You can see it in the image I provided. The spreads are normally larger during times of low liquidity (i.e. Asian session).
Hm, that is interesting....so where is the catch ?

I thought they would jack up spreads on cheap options...I mean you can make $100 and just risk $10.
  • #124
  • Edited 11:58am Nov 20, 2011 10:17am | Edited 11:58am
Quoting Traderlarry
Hm, that is interesting....so where is the catch ?

I thought they would jack up spreads on cheap options...I mean you can make $100 and just risk $10.
When the actual market price is at or near the floor/ceiling price of the outside bull spread options (which is always the same price for both), the option price for either one or both of the bull spreads will fall out of sync with the market price so that it (option price) does not make it to the floor/ceiling price. This can be anywhere on average from 5 - 15 pips.

So, let's say you take a trade in this scenerio. If market price starts moving in your favor, it normally will have to make it to the current option price (which has become stagnant) in order for it (option price) to fall back in sync with the market price.

For example, suppose market price is at 1.3998 and you have a bull spread you wish to sell with the range of 1.3900 - 1.4000. Depending on how much time is left on the option and market conditions, the current option price could be 1.3993, 1.3990, 1.3988 or 1.3985. Let's say you entered at 1.3988 with a 3 pip spread. Market price then moves from 1.3998 to 1.3991. Although price has moved 7 pips in your direction, the option price has not moved and is still at 1.3988. You haven't even covered the spread yet. Sometimes the option price might move a pip or two in your direction if market price is doing the same but hasn't caught up with the option price. Once market price catches up with the option price and keeps moving, then both are back in sync and you should experience profit.

I would like to point out that when I say in sync, I mean that the option price will usually end up experiencing a pip change whenever the market price does. This does not necessarily mean that both prices will have the same value. They may differ by a few pips.
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #125
  • Nov 20, 2011 11:01am Nov 20, 2011 11:01am
Thanks Kapital, very well explained.

You obviously need to catch the major moves of the day to make use of these options.
  • #126
  • Nov 28, 2011 4:25am Nov 28, 2011 4:25am
I entered this bull spread with 10 contracts @ $20/contract ($200 margin; $10/pip).

It is one of the 8hr bull spreads (11pm - 7am) so I had enough time for price to work its magic.
Attached Image (click to enlarge)
Click to Enlarge Name: TRADES.JPG Size: 26 KB
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #127
  • Dec 4, 2011 7:53pm Dec 4, 2011 7:53pm
Hows everybody doing trading the bull spreads on nadex?

Andrew
  • #128
  • Dec 30, 2011 8:57am Dec 30, 2011 8:57am
Quoting kinkeadfx
Hows everybody doing trading the bull spreads on nadex?

Still demoing....
Attached Image (click to enlarge)
Click to Enlarge Name: TRADE.JPG Size: 32 KB
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #129
  • Jan 16, 2012 8:01pm Jan 16, 2012 8:01pm
When you pick your spots, just let everything else take care of itself.
Attached Image (click to enlarge)
Click to Enlarge Name: TRADE.JPG Size: 49 KB
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #130
  • Jan 17, 2012 7:52am Jan 17, 2012 7:52am
Quoting kapital
When you pick your spots, just let everything else take care of itself.
Hallo kapital,

Where could I register for a Nadex demo account?

Thanks
  • #131
  • Jan 17, 2012 8:08am Jan 17, 2012 8:08am
Quoting Forex5050
Hallo kapital,

Where could I register for a Nadex demo account?

Thanks



www.nadex.com
  • #132
  • Jan 17, 2012 8:09am Jan 17, 2012 8:09am
Quoting Forex5050

Where could I register for a Nadex demo account?
Have you tried looking on the nadex website? There is a huge link that says DEMO on the bottom right...

  • #133
  • Jan 17, 2012 8:55am Jan 17, 2012 8:55am
Quoting traderjai_inhi
Have you tried looking on the nadex website? There is a huge link that says DEMO on the bottom right...

Wow, I seriously didn't see that.

Thank you!
  • #134
  • Jan 17, 2012 10:45am Jan 17, 2012 10:45am
Haaa no worries, happens to all of us. I did notice that my firefox had trouble with one of their links but all the way at the bottom under "Join Nadex" (in the grey part) works just fine.
  • #135
  • Jan 18, 2012 8:50am Jan 18, 2012 8:50am
Does anyone know whether I.G. Index offers the same binary options as Nadex ?

Apparently you cannot trade on NADEX if you do not have a US bank account... That sucks.
  • #136
  • Jan 22, 2012 10:26pm Jan 22, 2012 10:26pm
don't be so unpolite... anyway thanks for sharing experience.
very nice, good price..!
  • #137
  • Feb 14, 2012 4:35am Feb 14, 2012 4:35am
I opened my charts and platform around an hour ago and found a setup I liked for GBP/USD to go up further and took a couple of trades. The timing was just right.
Attached Image (click to enlarge)
Click to Enlarge Name: TRADES.JPG Size: 36 KB
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #138
  • Feb 17, 2012 4:02pm Feb 17, 2012 4:02pm
Quoting Traderlarry
Does anyone know whether I.G. Index offers the same binary options as Nadex ?

Apparently you cannot trade on NADEX if you do not have a US bank account... That sucks.
you could use pfgbest they are an introducing broker for nadex but they offer daily binaries only , they are looking to add the rest of nadex markets ...
  • #139
  • Mar 9, 2012 5:59am Mar 9, 2012 5:59am
Quoting Yoda_Glenn
You MUST start up the https://www.nadex.com website and not the http(without the s) nadex.com address.
By the way, I am trading 2 hour Nadex Bull Spreads EXCLUSIVELY now. They are highly profitable as they often payout 200% on your investment without a stop loss.
Hi in your early thread about why binary option is better than spot u talked about investing $25 and the payout is $75.is this real?and if it is then which broker is this that gives high return than wat one can lose if the trade goes against him
  • #140
  • Apr 8, 2012 9:43pm Apr 8, 2012 9:43pm
Quoting fxrambo
Hi in your early thread about why binary option is better than spot u talked about investing $25 and the payout is $75.is this real?and if it is then which broker is this that gives high return than wat one can lose if the trade goes against him

fxRambo, He’s referring to the binary options that www.nadex.com has. In the example given if you pay $25 for a binary that is the max you can loose on that trade. The expiry value of a Nadex binary option is either zero or one hundred dollars. So if you pay say $40 for the binary and you win your profit would be $60 and you’re only risking the $40 you paid for the option. The nice thing is you can also trade in and out of the options freely so if you want to take profit or stop out of the trade you can. Nadex has lots of info on their web site explaining how it works much better than I can.
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