megavideolinks Fri 18 Nov 2011, 8:14 pmNadex.com or North American Derivatives Index offers simplified derivatives for trading stock indices, forex, commodities, or economic events with the help of limited risk in a transparent or limited market. You can partner with Nadex.com by adding the exclusive products to the client offerings. The system caters to systems providers, market makers and others
Description: This article covers the different kinds of binary options stock indices which are offered at Nadex.com.
If you partner with Nadex.com, you can get a low cost shortcut for expanding your online product offering to enhance your business revenue.
Bull Spreads
The Bull Spreads offer a variable payout percentage which allows you to take a short term position on the direction in which the market is heading. The simple structure of the Bull Spreads offer you the option of trading on where the price will lead to, while at the same time limiting the exposure to extreme changes in the prices.
Analyzing the Underlying Market
The Bull Spreads are settled according to the shifts of the underlying market which is usually a Futures market. For instance, the Bull Spreads for crude oil are settled on the basis of the prices of the NYMEX crude oil futures. Therefore, while going to purchase a Bull Spreads contract, you take a position which makes the underlying market higher during the expiration of the contract. On the other hand, while selling the Bull Spread contract, you will speculate that the underlying market will have a lower rate during the time of settlement.
Floor and Ceiling – Limited Risk
Every contract which is made at Nadex.com has a Floor and Ceiling which is associated with it. These are parameters which represent the maximum (Ceiling) and minimum (Floor) levels in which the contract of Nadex.com can be settled irrespective of the distance past which the levels of the underlying market might have moved. The values of the Floor and Ceiling parameters for every individual contract remain all along the life of the contract. With the settlement range of a Bull Spread being defined rigidly, the maximum estimable profit or loss is always estimated in advance.
Contract Ranges
Nadex.com offers different kinds of bull spread contracts and their ranges. Those which have a longer duration of time have a wider range, whereas those contract durations which have a shorter duration have a smaller range. For instance, the 21-hour Bull Spread of EUR/USD may have a range of 600 pips with the Ceiling being at 1.4000 and the Floor at 1.3400.
The Bull Spreads of 8 hours and 2 hours have a smaller gap between the Floor and Ceiling and may stagger in overlapping ranges. While the Bull Spread of 8 hours for EUR/USD has 250 pips, the EUR/USD Bull Spreads each have a range of 100 pips with the following:
Ceiling 1.3700, Floor 1.3600
Ceiling 1.3750, Floor 1.3650
Ceiling 1.3800, Floor 1.3700
All the contracts of the Bull Spread are defined in a way that a movement of a point or a tick implies a profit of $1 or a loss against every contract. Whenever you are trading with a Bull Spread, a single point movement is equivalent to $1 per contract for you.
The definition of a point varies between the various underlying markets. If the price of crude oil is in cents and dollars such as $71.58 while Wall Street 30 quotes it as a whole number. In each of the cases, a movement of a single point is a movement in the last digit.
For viewing the value of a point in a given underlying market, you should refer to the Tick Size value of the Stock Indices, Commodiies and Forex specifications.
Trading with the Bull Spreads
Once you start with the position in the Nadex contract, you need not hold it until the expiration period. You may log on to the platform and enter into an order for closing or partially closing your position at any given period of time until the expiration.
Funding
The specifications of Nadex require the user to fund the maximum risk of any particular trade before they can open the position. The maximum and minimum levels of risk should be assessed before opening a trade.
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Nadex review
Description: This article covers the different kinds of binary options stock indices which are offered at Nadex.com.
If you partner with Nadex.com, you can get a low cost shortcut for expanding your online product offering to enhance your business revenue.
Bull Spreads
The Bull Spreads offer a variable payout percentage which allows you to take a short term position on the direction in which the market is heading. The simple structure of the Bull Spreads offer you the option of trading on where the price will lead to, while at the same time limiting the exposure to extreme changes in the prices.
Analyzing the Underlying Market
The Bull Spreads are settled according to the shifts of the underlying market which is usually a Futures market. For instance, the Bull Spreads for crude oil are settled on the basis of the prices of the NYMEX crude oil futures. Therefore, while going to purchase a Bull Spreads contract, you take a position which makes the underlying market higher during the expiration of the contract. On the other hand, while selling the Bull Spread contract, you will speculate that the underlying market will have a lower rate during the time of settlement.
Floor and Ceiling – Limited Risk
Every contract which is made at Nadex.com has a Floor and Ceiling which is associated with it. These are parameters which represent the maximum (Ceiling) and minimum (Floor) levels in which the contract of Nadex.com can be settled irrespective of the distance past which the levels of the underlying market might have moved. The values of the Floor and Ceiling parameters for every individual contract remain all along the life of the contract. With the settlement range of a Bull Spread being defined rigidly, the maximum estimable profit or loss is always estimated in advance.
Contract Ranges
Nadex.com offers different kinds of bull spread contracts and their ranges. Those which have a longer duration of time have a wider range, whereas those contract durations which have a shorter duration have a smaller range. For instance, the 21-hour Bull Spread of EUR/USD may have a range of 600 pips with the Ceiling being at 1.4000 and the Floor at 1.3400.
The Bull Spreads of 8 hours and 2 hours have a smaller gap between the Floor and Ceiling and may stagger in overlapping ranges. While the Bull Spread of 8 hours for EUR/USD has 250 pips, the EUR/USD Bull Spreads each have a range of 100 pips with the following:
Ceiling 1.3700, Floor 1.3600
Ceiling 1.3750, Floor 1.3650
Ceiling 1.3800, Floor 1.3700
All the contracts of the Bull Spread are defined in a way that a movement of a point or a tick implies a profit of $1 or a loss against every contract. Whenever you are trading with a Bull Spread, a single point movement is equivalent to $1 per contract for you.
The definition of a point varies between the various underlying markets. If the price of crude oil is in cents and dollars such as $71.58 while Wall Street 30 quotes it as a whole number. In each of the cases, a movement of a single point is a movement in the last digit.
For viewing the value of a point in a given underlying market, you should refer to the Tick Size value of the Stock Indices, Commodiies and Forex specifications.
Trading with the Bull Spreads
Once you start with the position in the Nadex contract, you need not hold it until the expiration period. You may log on to the platform and enter into an order for closing or partially closing your position at any given period of time until the expiration.
Funding
The specifications of Nadex require the user to fund the maximum risk of any particular trade before they can open the position. The maximum and minimum levels of risk should be assessed before opening a trade.
______________
discount banner stands
Nadex review
