anyone trade with www.nadex.com ?

[kxvid]

"All Nadex contracts are Limited Risk. That means that you cannot lose more than the initial cost (maximum loss) of a particular trade, no matter how far the underlying market moves against you. The maximum risk for a trade is displayed to you in our trading platform before you place the trade."

This right here is a big issue. This is not a "regular" exchange. This is a quasi spread betting hybrid exchange. That will dampen some of the appeal of speculation.

For example: US 500 (nadex equivalent of ES)

Market Ceiling: 902.5 at 4:15 pm
Market Floor: 857.5 at 4:15 pm

With nadex, you are by definition forced to have a take profit at 902.5 and stop loss at 857.5 if you are long for instance.

 

[atticus]

Quote from kxvid:

"All Nadex contracts are Limited Risk. That means that you cannot lose more than the initial cost (maximum loss) of a particular trade, no matter how far the underlying market moves against you. The maximum risk for a trade is displayed to you in our trading platform before you place the trade."

This right here is a big issue. This is not a "regular" exchange. This is a quasi spread betting hybrid exchange. That will dampen some of the appeal of speculation.

For example: US 500 (nadex equivalent of ES)

Market Ceiling: 902.5 at 4:15 pm
Market Floor: 857.5 at 4:15 pm

With nadex, you are by definition forced to have a take profit at 902.5 and stop loss at 857.5 if you are long for instance.

Cap and floor CFDs are excellent IMO. Nadex fees are not.

 

[increasenow]

Nadex is great...love the fixed risk investments...I see this as the invenstment vehicle of the future for 'joe the trader'...also, they have very good liquidity...the spread realy is a non issue with this kind of trading...

 

[atticus]

Quote from increasenow:

Nadex is great...love the fixed risk investments...I see this as the invenstment vehicle of the future for 'joe the trader'...also, they have very good liquidity...the spread realy is a non issue with this kind of trading...

Liquidity sucks. If you lift 20 lots the market disappears for up to 30 minutes. The spread is huge.

 

[increasenow]

the real time bid/ask spreads on the spreads have been like 1 point...all day today!!!!...so, very tight...

also, liquidity is great...up to 400 lots on the bid and or ask...this is a really great brokerage with great products...been demo trading...

 

[puretruth]

Quote from increasenow:

the real time bid/ask spreads on the spreads have been like 1 point...all day today!!!!...so, very tight...

also, liquidity is great...up to 400 lots on the bid and or ask...this is a really great brokerage with great products...been demo trading...

What is the liquidity for the US 500 ?

 

[increasenow]

Quote from puretruth:

What is the liquidity for the US 500 ?

HUGE...in fact, I was just noticing the liquidity for the binary US 500 options are like 1,000 plus per contract...the spreads have been real tight...like 1 point...

 

[atticus]

Quote from increasenow:

HUGE...in fact, I was just noticing the liquidity for the binary US 500 options are like 1,000 plus per contract...the spreads have been real tight...like 1 point...

Were you dropped on your head as a child?

 

[Millionaire]

Nadex is a good scam.

The markets that are the most random going into the close of the binary option have the tightest spreads.

The more slower/predictable markets have the widest spreads.

The volatility on Nadex binaries, when they are acting as the market maker, is set delibrately low as punters will in general prefer to go for high probability bets.

Consider a binary option that based on standard models should be priced at mid price 75.

But Nadex will delibrately price the option at a midprice of 80 (or even higher).

They do this because they know punters prefer to bet on high probability binaries.

Now if you attempt to go the other way and sell that overpriced binary instead, you have the spread to overcome, and your chances of winning are only 25%. Most people cant trade with such a low win rate.

 

[Bigpipn]

I learned my lesson with similar binaries with IG markets. I bot a swissie binary for 81 at the top tick with 18minutes to expiration (3pm EST). First and last mistake there. I was batting 1.000 at that point. All it took was that one loss to give it all back.