Nadex Trading Platform Tour


Thank you for your interest in Nadex binary options and for taking the time to view this 30-minute session. In this
brief walk-through of the platform we will cover what is a
binary option, how to place a trade, how to close a
trade, and how to navigate the trading platform. Before we begin we should talk a little bit about
Nadex. Nadex is the exchange. The North American Derivatives Exchange is the first and largest binary options exchange designed for the
individual trader in the United States. We offer
simplified options. We do need to do a quick
disclaimer Futures, options, swaps and any trading that you do does involve
risk. Unlike leveraged accounts, you can never lose
more 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 go
through some examples today. Some buy examples, some sell examples these are random examples. This is not trading advice or
recommendation to buy or sell any particular contracts at Nadex. Nadex is registered with the CFTC that is the Commodity Futures Trading
Commission.That’s the government agency that oversees the regulation of futures, options, and swaps trading on US
exchanges. This should give you some comfort that Nadex operates in a regulated environment, which is important for all traders particularly in our space
where the majority of firms out there are not based in the US or regulated by
the CFTC. Nadex is the only exchange in the US to offer binary options on such a wide
range 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 the
binary option in about 30 minutes. There are other webinars and videos and written material on the spread
option. A spread option is a limited-risk contract
but it has different properties, characteristics, than the binary option. So let’s go to what exactly is a binary option? Well, it’s a simple yes-no proposition or a yes-no question. The question could be:
Will gold be above a certain price at a given time? In this example we’re looking at gold
being above $1700 a troy ounce and it’s a Nadex Gold
and here’s the greater than symbol and all times are Eastern. It’s saying at 1:30 p.m. So the question is, Will gold be above $1700 a troy ounce at 1:30 p.m. tomorrow. Now the buyer of a binary option is saying yes, gold will be above $1700 a troy ounce. The seller of a binary option says: No, it
is not going to be above 1700. It will be equal to 1700 or it
will be lower. So there’s two sides to the trade: the buyer who’s saying “Yes, it will be above,” and the seller who is saying “No, it is not.” Now, what is the cost of the binary option? Well, this is the
level that we’re talking about, gold being above $1700. So the cost that you would pay is going
to be determined partially by, Where exactly is gold right now? Is
gold at 1700? Is gold below 1700? Is it above of 1700. so if we take a look and say what I’ve called was exactly
1700 dollars a troy ounce. well the level is 1700 the strike you know the tier the Nadex level
is seventeen hundred dollars a troy ounce if that is the level and and gold is actually at
1700 troy ounce there’s about a fifty percent
probability that gold would be above this level or not it would be below so the cost if you are the buyer is fifty
dollars so, the cost is loosely tied to
probabilities in a binary option there’s a total above one hundred dollars in play
between the buyer and the seller the buyer’s cost is $50 dollars to
sellers costs fifty dollars in this example nobody has the upper hand nobody has an advantage there’s even likelihood at 1:30 gold will be
above 1700 or will be equal to or below 1700 a troy ounce. so this is an example of an at-the-money binary okay so gold is trading at the strike
price 1700 the level is 1700 so even opportunity for the buyer or the seller. let’s go and we’re gonna go through some examples
up for some contracts that are you know twenty dollars or thirty
dollars which would be about a twenty or thirty percent probability and again these are random examples
let’s go to the Nadex homepage where you can see right here under the Education tab there
are other webinars that you can sign up for there are great trading videos you can
take a look at under the trading tap here’s where you
can sign up for a demo practice account it’s free takes
about 2 minutes to fill out the application and they send you a randomly generated
password when you typed in the user name that you’d like… you
can also open a live account with Nadex, this
application is also free takes probably about seven minutes to
fill out. once you have filled out either the application for the live
account or the demo or both separate application here’s the demo
here’s the live then you’d have access to the
trading platform once you have that that you can
click on the login now what we’re gonna do is
we’re gonna do is log into on the web based version of Nadex and go through that trading platform there is also the Nadex pro platform which is a downloadable
platform and it has a different look and some different features on it. so that’s one thing that you can take a
look at again this is a free platform that’s downloadable to your desktop, for your laptop or
PC we going to the login page in we’ve got
our user name for a demo account click demo populates the demo dash
them we type in our name type in our password click Login were here onto the trading platform now what I’ve got
here is a… i click layouts and then re fresh and we can
actually make this screen a little bit larger, we are cutting off a little
bit of this but the other thing that you can do is you can customize your on your screen so
good is gonna grab working orders an we are going to pull it up a little higher and we can make boxes smaller we can make
things appear and dispear, we can take working order speak disappear and reappear to take a look
make sure that you can see your open positions and you’re working order. we’ll go
through exactly what that it’s just a minute couple things that you can note there’s
a watch list down here where you could actually make contract
window populate was different things lets say that you were interested and binaries and the metals like gold
silver and copper see click their and populates up here now of the top there’s a my account tab you
click on the My Account tab it brings up the account funding and up here is the history so if I click
on the word history I get a drop-down when I can do is take a look to see what
my… you know what my transactions are and
then under Settings I can do is take a look at you know my password word, change my
address, my email address okay now were here on the trading platform and what we’re
going to do is we’re going to take a look at a commodity binary for gold and we’re clicking and the word
commodities binaries reading a drop-down clicking on the word gold and we’re clicking on the word daily when i click on the word daily not the plus sign but the word daily I’ve got different contracts listed
over here and what I can do is there is a few contracts basically
here we’ll take a look at the weekly a few more choices here the weekly ends on Friday afternoon now Nadex the exchanges open pretty much 23 hours from Sunday
evening to Friday afternoon Nadex opens at 6 p.m. on Sunday evening it closes at 4:15 p.m. on Friday
afternoon it’s running around the clock but there
is one hour in the evening where Nadex closes between 5
p.m. and 6 p.m. Eastern Monday Tuesday Wednesday Thursday
between 5pm and 6pm Nadex closes for one hour for rebalancing
so if you have a weekly contract your contract is still there, you can’t
trade in that one hour but it’s basically carry-over we’re
looking at a weekly contract and basically another day or so now these are the different levels for
gold and all these are the different strikes tiers, and this one is just asking
will gold be above 1207 .5 a troy ounce at 1:30 p.m. tomorrow now way over on the
right we’ve got the indicative indexed
indicated index is basically showing us where is gold right now indicative
index is an approximate settlement price it’s a close estimation of where the
contract would settle at a particular time to say that the gold stopped right now not Friday at 1:30 but stopped right now
gold would be finishing at $11.95 point 50 a troy ounce now we’re taking a look at this level what if gold was gonna finish above
1207.5 a troy ounce okay if we’re the buyer we need gold to
move up let’s take a look at the cost to buy one contract and we can go through the
example here i click on a green circle or the 1207.5 I click left click a ticket comes up the
ticket basically reads gold based on the June futures price Nadex is giving you the indicative price
right here $1195 and 70 cents troy ounce this question is will gold be abover 1207.5 a troy ounce at 1:30 the tenth of April 2015. now if I wanted to buy one contract what I
can do is I can click on the blue buy right here and then for contracts the size is how many binaries would you
like to do what is the quantity what how many units I’m doing one unit
and I could choose to do two units are three but which could do one right now now for the price if I’m buying this blue number is the Buy It Now price this is the cost to buy one binary
immediately okay and thus numbers fluctuating just as the value of gold is fluctuating gold
was $1195 points 70 cents troy ounce now it’s point 30 cents a troy ounce these numbers are changing this is the
marketplace is people bidding and offering on this contract and again we’re talking
about a binary option that is a limited risk
contract you can’t lose more than your trade cost
and what we’re looking at here is something that is a little bit less
than a 19 percent probability costs about nineteen dollars
to buy so when I click I on either left click and
1950 or I can type in the number nineteen
fifty or i can uses little up arrow at will populate this
number when it comes up are looking at here since nineteen
dollars to buy one contract my max losses nineteen
dollars that’s the most I can lose now remember there’s a hundred dollars
in the equation if I’m the buyer putting up nineteen sellers putting up eighty one dollars my
max lost my cost the most I can lose ninety dollars my potential profit is
eighty one dollars so if I’m right and gold tomorrow is
actually above 1207 .5 troy ounce at 1:30 I’m gonna get my nineteen dollars back
and eighty one dollars profit for total a
one hundred dollar payout now there is a ninety cent fee to Nadex every time when you trade on the exchange ninety cents per contract in the way n
ninety cents per contract on the way out if I’m buying one contract it
would cost nineteen dollars and ninety cents at expiration I’m receiving the hundred
dollar payout there’s another 90 cent fee if my contract settles out of the money or
worthless there’s no second ninety cent fee, there’s no ninety cent fee on the way out if your contract settles
worthless so l if I buy one for nineteen dollars I could just wait i buy the contract and i’d have an
open position and I don’t have to do anything I don’t have to be in front of my
computer I just have to wait until Friday afternoon now I do need gold to
move up gold is trading at 1195 a troy ounce my contract is saying that gold will
be about 1207.5 a troy ounce so I need gold the move-up little over
twelve dollars a troy ounce and if it doesn’t then my contract settles worthless so one thing that I can do is buy the
contract hold it and then wait till expiration
wait for the time limit to to run down the other thing
that I can do is I can buy a contract and then sell it
back I trade in and trade out so i buying something that has value say
that i buy this right now for seventeen dollars and seventy five cents gold goes up been at midnight tonight
you know my contract is worth $37 dollars 75 cents I can sell it back and make twenty dollars not including the 90cent fee value
the binary can fluctuate between 0 and 100 I’m buying something at the price right
now would be seventeen dollars and seventy five cents so I can also buy it for 1775 and say
that the option is going ainst me and that gold is going down any gold go up I could sell it back early to minimize my losses to basically
get some of my seventeen dollars and fifty cents back now if I’m selling it back early, there has to be willing interest meaning that there has to be somebody
out there willing in the marketplace pay something For it if
I buy it eighteen dollars in gold starts going
down down down and the value my binary is going and it’s for ten dollars with five dollars is worth three dollars
for two dollars worth a dollar or 25 cents but at some point in time if nobody’s
willing to even put up 25 cents to by to contract to see a little dash in the bid column and right here we can see these dashes and that means that there’s no willing
interest on that side so we’re looking at these contracts
right here these three there’s buyers and sellers, buyers and
sellers, buyers and sellers, buyers and sellers this contract well there’s nobody out there willing to
pay anything for these right now it gold starts moving up buyers will
become interested in again and start bidding a dollar two dollars four dollars eight dollars but what we’re doing right here is simply by
the contract immediately we would have it open position and one
thing that we can do is just wait until expiration we don’t have to click on anything its
all or nothing now were either gonna lose
the eighteen dollars or we are going to get the eighteen dollars back and eighty one dollars profit, now, if we sell it back early it has to be in between you know there has to be willing
interest in order to sell it back and there’s a ninety cent fee when we
sell it back so one thing that we can do is just establish an open position by actually buying the contract immediately now, a
working order is where we negotiate if we wanted to
try and get the contract buy it for cheaper price so the cost right now is 1750 the Buy It
Now price we could put in a bid try and get it at a lower price that we
don’t want to pay 1750 really want to pay sixteen dollars
for the contract all we can do is we put in a bid and we have a working order working order means that we’re working
to buy were trying to buy you haven’t bought anything yet were
haggling, we’re negotiating so if I put in a bid to pay sixteen
dollars they’re trying to sell it for eighteen
dollars I’m negotiating now when I put in a working order sixteen
dollars does come out of my balance because it is a fully collateralized
contract you have to have sixteen dollars in your
account in order to buy something so that money goes into reserve at Nadex but with the working order I’m trying to buy it for a while I could
also make a decision to cancel that working order and take out my bid nobody’s traded
with me a seller didn’t come in and sell it to me well then I can cancel my bid, cancel the
order 16 dollars comes back to me there’s no trading fee because I didn’t
trade I was trying to trade but in actually trade so one thing that
I can do is a I can put in a working order will do that we’ve got contract
here when I click place order where going to see come down here in two are working orders window now this order received box means
that nadex the exchange has seen our order so it’s on the exchange in working order does
not mean that we’re filled, does not mean that we’ve bought a binary we’re trying to buy it
right now so were trying to buy it for sixteen
dollars and somebody to current market the seller’s out there trying to sell it
for 18 dollars we haven’t bought anything yet when I click on this green circle it’ll
bring up my tickets left clicking on the green circle I can see there’s transparency in the
marketplace I’m here bidding for one contract for
sixteen dollars nobody out there knows that it’s me but I’m the bestbid here trying to buy
this contract and try to buy it for sixteen someone else trying to buy it for
eighteen I’m trying to buy one contract the number out here while there’s a
hundred contracts for sale at the price 18 if I take my sixteen
dollar bid up to 18 this 100 will change to 99 so what we talked about we can’t delete
remainder that cancels my order sixty dollars comes back to me and I
basically no longer have a working order trying to buy it no longer
having a limit order or what I can do a second amended order
to we amend and we can take the price up let’s take the price up to 18 and
actually buy to contract i click amend order will see it up
here at open positions now I’m clicking on amend order now it says order amended we have a open position just received in email for me from nadex that’s our trade
confirmation email to now we’ve actually bought the
contract but what is it that we bought what we
bought a contract saying that gold will be above 1207.5 a troy ounce tomorrow right now gold is trading at 1194 an ounce we want gold to go as high as possible we want it to go higher than
this number if it reaches this number to contractors and stop remember it has
to finish above 1207.5 a troy ounce at 1:30 to the gold goes up to 1210 1220 dollars
now it’s that’s fantastic will see the value of
our fine you’re going up up up remember at the very very and it has to
finish in order to receive the one hundred dollar
payout so if I wanted to sell it back early and there’s going to be a little
bit of a difference between the in the offer here I wanted to sell it
back early the market really hasn’t changed very
much but I could sell it back by clicking on the green circle now I’m
selling it back at this price about nine bucks for my contract when i click place order I’ve sold out of my contract will go through all this again so what I
did was I clicked on this is random example I
clicked on the word commodities binaries I clicked on the word gold clicked on
the word weekly at the possible the word weekly
populated all the strikes at all levels right here clicked in the green circle for the 1207.5 troy ounce now I can choose by contract size would be one click on the 1825 and click place order I just bought the
binary I am in open position now I came close my contract by selling it
back I’m selling it back early I could just
wait until 130 tomorrow wanting to do is actually sell the
contract back clicking sell selling back at this price clicking place
order I bought it and I’ve sold it now that’s the
example for a buy example initiating when you’re buying. let’s go through an
example where you’re initiating to sell so we can take a look at this one right
here which is the 1177 .5 strike for gold by clicking on this green circle if I want to sell the contract you count down from a
hundred to this number and that is your cost to you’re buying account from zero going
up to this number if you’re selling your coming from a
hundred going down to this number so I click on sell, my size is one when I’m gonna do it the price is
gonna come up and then my max loss it’s gonna be about
eleven dollars and fifty cents to sell this contract the price from 0 to 100 at a price point
and I’m selling it is 1850 I’m left clicking an 1850 or 8850 my costs $11 dollars and fifty cents I’m counting down from a hundred to this number the buyers putting up
8850 I’m putting up 1150 to sell the contract what is it that I’m selling well I’m
selling that the contract it’s a yes no question I’m
saying I’ll gold will not the above 1177.5 troy ounce I need gold to go down about twenty
dollars an ounce that’s why my trade costs about eleven
dollars I’m getting you know a little bit better
than 8 to 1 return on my investment any gold really moved down but once againone thing that I can do is sell the contract and then just wait and I’ll
have an open position or I can buy the contract back early for a profit or loss to say that I sell it 8850 and then gold
goes down and i buy it back at 7850 okay I’m getting my 1150 back and making
ten dollars profit you can trade and trade out this is just
basically taking the sell I want gold go down I’m seeing the gold
will be equal to 1177.5 or lower clicking on and the word place order and now it’s actually got
moved up to eighty-nine to get her eleven dollars I spent 11 hours are sell
this contract I want gold tank to go down as much as possible but
I needed to finish equal to 1177.5 or lower specifically at 1:30 I want to buy it back click on
the green circle I sold it I’m buying it back in order to
offset my position get a few bucks back on the contract and
I sold for on eleven dollars now this is an example
for a buy and a sell we’ll take a look at up one other example here and we’ll go
to some charts so what i’m looking at this little icon
right here and it looks like a small I can that you can see and basically
this is for the chart and all I did was again there’s little tiny icon right here
showing the chart and I can click on technical analysis I can draw in lines are different things that you can play around with I once again all I did was I clicked and this little
icon an order to bring up to chart now arm when you’re looking at these
contracts and we’ll go to let’s say that we’re
looking at the indices binaries we go down to wall street 30 which is Nadex derivatives for the Dow Jones
emini contract click and the word daily okay here are all the different levels for
the Dow Jones will the Dow Jones the above 17900 well
the dow jones be above 17 880 the buyer saying yes seller
saying no now you can a shortcut instead of clicking on the green circle a shortcut is to click on the actual blue or I red box If Im clicking on this twenty 8.0 20.25 20 .0 it brings up the ticket with by already populated and price 2850 populated in my account
camp up here I can sets the quantity to always come
up as one or two are set the default
quantity whatever number that I want so I the probability that we talked about in the cost of the binary being loosely
tied to I each other we can take a look this
contract get out cost about $12 dollars about 12
percent probability this one cost about eighteen dollars
eighty percent probability know it you can do this is take a look
there’s a bid twenty one dollars in offer twenty seven
dollars what is the number in between that 24 roughly what about a 24 percent
probability we look at contract that we needed a
market to move what if we looked at a market where we
had the upper hand well here’s one there’s one where costs seventy three
dollars pull this one up this one is saying will the Dow Jones be above 17 740 at
4:15 p.m. right now the dow is trading at 17 777 so it’s 37 points above the level
that we needed to finish at thats why my trade costs about seventy
three dollars seventy four dollars I’m making twenty
five dollars about a seventy percent probability that’s why I have the upper hand and I
putting up more money I can have the Dow Jones sit where it’s at it can go up can go down
thirty points and still okay but noted to have tht I have to pay a little bit more so there
has to be up balance between the buyer and the
seller it has to make sense for both parties I
want to buy this contract immediately cost seventy one dollars I can put in a
bid for a lower price and wanted to try and buy for seventy dollars but there’s nothing if I put in it’s
called working order remember there nothing
that says that my working order will actually be filled so I could put in a bid to try and pay five dollars for this contract well, I might never ever buy it I might just be spinning my wheels the
entire time trying to buy the contract I dont actually buy it at 4:15 to contracts
over the five dollars comes back to me and it shows up cancelled order I was
trying to buy it the whole time so to buy it immediately I can pay this price or I can put in a bid to put into working order let’s see
if I wanted to try and buy this for seventy dollars when I put it in for one contract well lets put in two contracts will see the
number two here and the bid will be seventy I’m trying to
buy it for seventy dollars. Here’s me I’m trying to buy it seventy dollars for
two contracts. somebody else trying to be sixty-nine
dollars sixty eight 50 for 200 catch ex I’m just
trying to buy two I have a working order I can go down and change it let’s say we just want to
do one contract command I’m just working one contract more let’s say that I wanna cancel it click on the green circle delete remainder wanted to thank you for attending the
are watching the session the session and thank you again for taking a look at Nadex, we want to wish you luck good luck on your trades
and you can always call Nadex customer service if you have questions I thank you again for watching this
presentation

18 thoughts on “Nadex Trading Platform Tour

  1. I love Nadex . I just wish they would come up with a 1 min Binary option, They can be trusted. That I know. Here is to you Nadex for being there for us traders in the USA and 47 other countries. Kindest Regards KC

  2. Ive tried the overseas platforms and they are not regulated so they can manipulate the market for their benefit. Nadex is regulated so they wont do that.

  3. Can you straddle both sides. If it's an 8:1 or 5:1 payout, can you say it'll go up and have another position saying it'll go down? Wouldn't you win either way then?

  4. I was lost with this nadex platform brother awesome explanation I've learn something with this video thanks you so much I really appreciate. Can you please make a video of how much is the minimum deposit please?

  5. Nadex, you guys need to update your platform….its got to be more user friendly…awesome tool, but not attractive to see.

  6. Can you put in different range of contacts at the same time similar to buying or selling an iron condor?

  7. Why is Nadex currently juicing the potential loss by $10? For example: If a trade has a potential profit of $50, the potential loss now says $60.

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