Trading with Nadex
The North American Derivatives Exchange (Nadex) is one of the most trusted names in the world of binary options trading. They opened up for business in 2009, and they are one of the only CFTC regulated binary options exchanges in the United States. This means that if you live in the U.S., Nadex is one of the best options for you.Always Start on a Demo Account – Get One Here
Obviously this distinction comes with a lot of weight and importance. But just because it’s the one of the only fully regulated exchanges in the United States does not mean that you should automatically create an account and fund it. Nadex offers a different type of trading experience from the European style brokers that you may be familiar with, and they are not the right place for all traders to go.
The Benefits of Nadex Trading
Nadex is a slightly different type of binary options trading experience than what you may have seen in the past. Depending on the asset that you access, you will see a variety of choices for how to trade, but every trade you will be faced with, Nadex will give you a maximum amount that you can earn and a maximum that you can lose. Your job as a trader is to predict an outcome that has a strong chance of being profitable and reduces your chances of losses to as little as you can get them, while maximizing your chances of earning money.
For your peace of mind, Nadex’s trading platform is very simple and straightforward. Trades can be established and monitored from a single screen, ensuring that the process is quick on your part so that decisions can be made with as little hassle as possible. Although this is a slightly different type of trading, the way that the software platform is setup, the differences are minimal. You will need to adjust the math on some of your analysis and risk management techniques, but this is a simple change and you will learn how to make these adjustments with some experience. Using the Nadex demo account platform can help to speed up this process.
Nadex provides their traders with a lot of tools to help them succeed, such as charts and technical analysis indicators. They also have a lot of different types of trades that many brokers don’t offer, such as an ability to predict economic events, such as what the Federal Reserve will do with upcoming announcements, what the jobs reports will say, and how political events will turn out. This gives Nadex traders a lot of flexibility that other sites cannot.
U.S. Traders Welcome
You may have noticed that a lot of brokers flat out reject binary options traders from the United States accessing their websites. However, Nadex is designed with U.S. traders in mind. Nadex is headquartered in the United States and is regulated by the CFTC. If you live in the United States, Nadex is one of the only exchanges regulated and designed with you in mind.
What’s an Exchange?
You may have noticed in the name above that Nadex is an exchange. What does that mean to you as a trader? Read more in the Nadex review as well.
At an exchange, you are buying options contracts from other traders who have placed them for sale. You can also choose to create and sell options contracts if you wish, too. The winning side of the trade earns the return that was agreed upon before trade execution. This means that when you have a losing trade, it’s not the broker who profits, but rather the other trader. Nadex makes money by charging a nominal fee with every contract bought and sold. It also encourages traders to look for the best deals possible as there is no manipulation of contract prices, but everything is determined by real people like you. It creates far more in terms of opportunity, too.
This is opposed to a binary options broker, where you have unlimited access to trades because the broker backs every trade you make. You are not purchasing an option from another trader, but rather from the broker itself.
In many instances, an exchange gives you more freedom than a broker does thanks to the customization capabilities that you gain. It also has some downfalls. For example, if you wish to sell an option an no one purchases it, your trade is not completed. This doesn’t happen often, but it is a possibility. It eliminates your chances of making a profit in some cases, but it also eliminates your chances of losing money. Is it inconvenient? Sure, in the rare times when it happens. But it can be a blessing in disguise.
Nadex is a strong and reputable exchange, but they require some practice if you want to be successful. Trading isn’t for everyone, and it does involve a large amount of risk at times. Knowing how to use the platform and the specific types of trades that you will be making will help you to reduce some of that risk and improve your odds of making money.
If you are still unsure about whether trading at Nadex is best for you, take their demo account out for a spin. Just because you want to trade and you live in the United States does not mean that Nadex is the right place for you. Using their free demo trading platform will give you a better idea of whether you can use this broker well enough to give yourself a chance of making a profit. Practice, education, and dedication are key parts of success, and Nadex gives you as many tools as they can to be successful.Register an Account Today
***Your capital may be at risk. This material is not investment advice.***