You can break it down into fivesimple steps. First, you need to have some opinion onwhat might happen to a particular market at a particular point in time. There areplenty to choose from. Nadex offers binary options on a huge range of themost heavily traded forex, stock indices and commodities markets.Over 2400 contracts daily. So, after you decide which marketyou're interested in, let's say you're into commodities thencome step 2. Time to choose an asset. Exciting. We'll look at gold. We're alreadyalmost halfway done.
Amazing. Next, decide your moment of truth. That means selecting a strike price andan hourly, daily or weekly expiration. In other words, the exact price in time that you wanna make your prediction for. So if you choose 1:30pm today, then at1:30pm today, your trade will expire, and you'll know whether you made aprofit. Step 4, select a direction. Meaning if you think goldwill be higher than this amount at 1:30pm, you choose buy.If you think it will be lower, sell.
See how there's the maximum profitand maximum loss listed with the price of the contracté Yep, you'll always know how much moneyyou can lose or gain. That is called full disclosure. No surprises.With step 5, you've got options. You can either wait for the contract toexpire, or close out early. Yep, with Nadex, after you place a trade,you can change your mind. Close early to limit losses or lock ingains. And, well, that's it. I wasn't joking. Fivesimple steps
Nadex Trading Platform Tour
Thank you for your interest in Nadex binary options and for taking the time to view this 30minute session. In thisbrief walkthrough of the platform we will cover what is abinary option, how to place a trade, how to close atrade, and how to navigate the trading platform. Before we begin we should talk a little bit aboutNadex. Nadex is the exchange.
The North American Derivatives Exchange is the first and largest binary options exchange designed for theindividual trader in the United States. We offersimplified options. We do need to do a quickdisclaimer Futures, options, swaps and any trading that you do does involverisk. Unlike leveraged accounts, you can never losemore than what you put up for with each trade.
So your losses can never exceed your trade cost or your initial deposit. We're going to gothrough some examples today. Some buy examples, some sell examples these are random examples. This is not trading advice orrecommendation to buy or sell any particular contracts at Nadex.
Nadex is registered with the CFTC that is the Commodity Futures TradingCommission.That's the government agency that oversees the regulation of futures, options, and swaps trading on USexchanges. This should give you some comfort that Nadex operates in a regulated environment, which is important for all traders particularly in our spacewhere the majority of firms out there are not based in the US or regulated bythe CFTC.
Nadex is the only exchange in the US to offer binary options on such a widerange of markets including forex, indices, and commodities all of which are available on our platform. Nadex has two types of options. One is called a binary option and the other is called a spread option Today we're going to go through thebinary option in about 30 minutes.
There are other webinars and tutorials and written material on the spreadoption. A spread option is a limitedrisk contractbut it has different properties, characteristics, than the binary option. So let's go to what exactly is a binary optioné Well, it's a simple yesno proposition or a yesno question. The question could be: Will gold be above a certain price at a given timeé