Thanks Stock Piker, I agree with you about increase now! I am still trading with Nadex and very satisfied, as for the commissiions its just something we deal with for now, but I always keep in mind the what I am getting out of the deal. I am not scalping , I am playin a daily option and picking a range, so if I choose to trade the euro and want to make 500 bucks, well if I chose to play the spot euro i need to make 50 pips on 10 minis or 1 standard, where as on the binaries I only need it to move 1 tick past my strike, and I tend to play strikes at the money. So its hard to compare the apples to oranges with commission, with all the different strategies you can set up with the daily binaries , the commissisons are not to bad. Its some people want to scalp and need to be doing something and do not have an open mind. It might not be for everyone, but there is pretty good merit here to make good money with limtied risk and only having to be right by a tick. Now the good thing is on April 1st they got there approval for other FCMS to carry Nadex exchange products. Like fcms already carry different exchange products like the cme cbot etc.. Nadex is an exchange so now they are in talks with a few fcms to carry thier products. What I like about IG carrying the nadex now is being able to trade spot and binaries in the same account, it will be nice to play with certain hedges or some covered calls, and even using the binary as a stop loss protection. So there are many ways to use binaries despite the commission, if you have any questions my friend, please PM me. Hope your having a good weekend, and let me know how it goes if ya give it a second look!
thanks Man..awesome stuff...what binaries do you mainly trade?...Oil, Euro, Inedexes? etc...thanks again
Very interesting. I will check them out on demo. Also, I could see it as a way to hedge your bet on es futures. Say you go long es, and instead of having a fixed stop, you go short on nadex. Also, one question I am wondering is if say it goes 1 tick beyond your target price on nadex, does it have to stay above that target price till the end of the day, or do you make the money right then or do you need to trade out of the position if you want to close it.
1-for ES, to win $$, it simple has to settle 1 tick above your target price (or 1 tick below if short) at 4:15pm EST ES futures closing price.. 2-does not matter where it goes during the day...just what happen at close at 4:15pm EST 3- you do not get the $$ if goes 1 tick above/beneath your target intra-day...but...your price/premium does rise or decrease the closer you get to or move away from your target...kinda like stock options...you can simply trade out and take your profit but not the full profit of 100 and intraday settling would not be automated like the settle trade at 4:15pm est.
also, they have many, many intraday (2 hour) sessions for the binaries as well as daily and weeklies...
Hey Oracle, It has to expire 1 tick above the strike, say if your were long the option to get the full benefit of the money. But it is tradeable. So the other day I did an es trade, I traded off the 30 min chart and found my signal and went short. I think the market was at 1189 and I found an 1187 strike on nadex, since the market was above the strike by 2 points the binary was priced around 65 or so on the bid. So I shorted at 65 , 10 lots. Which is max profit of 650 bucks max loss of 350 bucks. Which is max loss is if it rises to 100 and max gain at zero. The market tanked over the next half hour to hour, and it was early I was several hours away from expiration which was close of the market at 415pm est. So when it tanked I was able to buy back at 6 so I made 590 bucks. Now if I would have left it for expiration I would have lost because the market turned around. I gauge if I will hold till expiration or not on the price action. If I do the trade pretty early I tend to think I will trade out of it, alot of times on the es I play the 245-315 reversal as well. Even though my max loss was 35 points or 350 bucks on 10 lots i stop myself out when my trade or the price action is negated, so the max loss is really only for castastrophe. Plus you can also gauge the volatility, closer to expiration that day these binaries whip around, if you have 8 hours left they will move slower. These trade all night on the es as well. SO there are lots of opportunities. I really do not mess with the 2 hourly options, thats more gambling. I trade just as I would on the regular es futures, meaning I look for signals and have stops.
Sunday April 11, 2010 Gonna 'kick it on over' to my real/live cash IGMarkets/NADEX account for now... *may trade Spot Forex...maybe...but really small... *probably more focus on the NADEX Binary products Flat out, I simply believe I would be a better swing/position trader rather than scalper. The NADEX binaries are really fit for that. Either through the dailys or weeklys. It has been really, really hard for me to 'manage' the QUICK p&l immediate red - $$ amounts and I am jumping out of trades too early or too concerned of being thrown into overnight margin or... NADEX binaries are great in that they are fixed loss amounts...can't lose more than the premium...unlike normal futures... What possible spot forex? EUR/USD GBP/USD AUD/USD USD/JPY USD/CHF USD/CAD ....others...perhaps... NADEX contracts most likely... Crude Oil Euro Soybeans Corn DAX ...maybe FTSE and Gold? ...okay, go ahead and slam me etc etc...at least being honest and learning...learning more about perhaps the type of trader I am...
Well you obviously do not understand the nadex yet, the dailies are not so much a swing trade, you can max out expiration in a few minutes, again you need to learn to trade before you try anything, and the soybeans and corn are pretty hard on the binary side so have fun.