thanks, found the quotes, strikes are way apart. I think they could do way better than Nadex if they offered many more products as it would only take a stock account to trade them, and not a futures account.
thanks, found the quotes, strikes are way apart. I think they could do way better than Nadex if they offered many more products as it would only take a stock account to trade them, and not a futures account.
I think you would be better off just trading verticals on the main exchanges. You would be giving up less edge and could replicate binaries risk profile very well.
For example say you sold the 1850 binary put on the SPX 10 times for .20. Your risk would be .80 or $800 and your profit potential would be $200. You could instead sell the 1850/1840 SPX put spread for 2 one time. Less commissions and you would lose that maximum $800 if the SPX settled below 1840.
I think you would be better off just trading verticals on the main exchanges. You would be giving up less edge and could replicate binaries risk profile very well.
For example say you sold the 1850 binary put on the SPX 10 times for .20. Your risk would be .80 or $800 and your profit potential would be $200. You could instead sell the 1850/1840 SPX put spread for 2 one time. Less commissions and you would lose that maximum $800 if the SPX settled below 1840.
you make good points, but they still don't expire every day. In my experience they mostly replicate a binary just before expiration.
I went through the volume report for Nadex today. Wow, so anemic. I thought way more people were trading there. Still, no problem with fills as long as you pay the spread.
