Thursday, May 23, 2013

Nadex Binary Options | Is This A Safe "Option"?

Good Day all, I stumble on this webpage while educating myself with binary options. This "broker" does not offer MT4 as a trading platform. They offer their trading via a unique real time chart that is all web-based.

So what is Binary Option Trading?

In short they are straightforward low-risk derivatives. Based on a simple yes/no proposition, they offer an intuitive way to trade the financial markets with relatively low collateral. The difference with Nadex is that I believe it is the only options broker that is overseen by the CTFC(Commodities Futures Trading Commission).
Here is an example of a typical Binary Options Trade



Will the price of gold be above $1625 at 1:30pm? 

If you think yes, you buy the Binary Option. If you think no, you sell.

The price at which you buy/sell is not the actual price of gold, but rather a value between zero and 100.

For example, Gold > 1625 (1:30PM) may be priced at 42.50/48.50. The first figure is the bid price (sell), the second is the offer price (buy).


Binary Options Trading can be traded with Forex, Indices, Commodities and Stocks, pretty much anything available. They can be traded Intraday, Daily, Weekly, or any specified time frame, including 1 min. quick trades. 

They offer Demo accounts with no commitment to US residents. I have included the link here;


If you wish to start trading Nadex with real money, you can get started with as little as $100. Your funds are segregated in US banks for security purposes. There is even price protection from market "spikes".

Of couse there is the ability to trade via mobile device as well. Please let me know if anyone has experience with this company as I am very interested. I will probably set-up my own demo account to give this a test drive.
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