Nadex 101 – Nadex For Dummies and err…. You!
Thinking about trading binary options on Nadex? If so, you need to know that Nadex is a little different from other binary options sites you may have traded on. The platform is proprietary and something you will need to get used to using. The basic steps are not all that different, though, so you should get the hang of it fairly quickly if you already have binary options trading experience.
First, open a live account: (100% free – Demo Available)
Navigate to https://www.nadex.com/.
Click the green button in the upper right-hand corner of the screen which says “Open An Account.”
Fill out your Contact Information and Additional Information, and fill out the Questionnaire.
If you prefer, you can navigate to https://www.nadex.com/demo and open a demo account. Select a username, fill in the Personal Details and click the orange “Open a Demo Account” button.
If you register for a live account and want to fund it, you can use your debit or credit card, wire transfer, bank transfer, or a paper check. The minimum deposit is $100, but I recommend at least $250, which currently gets you three fee-free trading days. For withdrawals, set up Automate Clearing House network (ACH) for bank transfers. This will get you away from withdrawal fees.
Once you are all set up and you log in, you can go to the live or demo trading platform.
From there, you can place a trade. You can see how trading on NADEX works here.
First things first. If you are totally new to binary options, you need to know what they are.
What Are Nadex Binary Options?
With a High/Low trade, you are answering a simple question.
At the time this trade is set to expire, will the given asset be trading above or below the given strike price?
If you think that the asset will be trading above the strike price (that price will go up), then you pick “High” or “Up” or “Call” (any of these may be used depending on the site you are trading on and they all mean the same thing). If you believe that the asset will be trading below the strike price (that price will go down), you pick “Low” or “Down” or “Put.”
You then wait to see what happens. If you are right and the asset is valued as you indicated at the time the trade expires, then you win the payout. If you are wrong, you lose. (more details)
This is why High/Low options are referred to as “binary” trades. They have binary outcomes. You win or you lose.
Some sites (including Nadex) give you tools you can use to manage your trades while they are in progress. If you use the Early Close feature, you can exit a trade before it expires if you are trying to prevent or minimize a loss.
Why Nadex? What is special about them?
In just a moment, I will walk you through you can place a trade on Nadex. But why choose Nadex instead of another binary options site? There are after all hundreds of them in existence.
Well, here are some great reasons to consider:
On Nadex you can trade a wide variety of assets, including currencies, indices, commodities, economic events, and Bitcoin. Not a lot of other sites offer Bitcoin and event trading!
Nadex offers a fully functional demo account with absolutely no strings attached. You can use it even if you never make a deposit or share your credit card information with the site. That means you can practice as much as you need to and only trade when you are ready.
Nadex is regulated by the CFTC and offers legal, safe trading for US citizens and international traders.
Your funds are segregated from the company’s funds to protect them. After a short waiting period you can withdraw as much as you want to from your account at any time you wish, with no restrictions.
You are trading with a company that has no conflict of interest with you. Other brokers take the opposite side of your trade and have a vested interest in you losing. Nadex doesn’t. This is an exchange where the other side of your trade is taken by another trader. You are in a completely fair situation. There is no guarantee of that when you trade with an offshore broker that does not follow the exchange model.
So having established that you do want to trade on Nadex, how do you do it? Let’s look at step 2, trading binary options on Nadex.
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