How to Make a
Binary Option Trade
We have developed the Nadex trading platform to make trading Binary Options as straightforward as possible. This step-by-step guide walks you through the process.
Once you’ve opened an account with Nadex you can log in to the trading platform from anywhere on the site.
- Click the blue Log In button at the top-right of your screen
- Enter username and password in boxes provided
- Click Log In to enter the Nadex trading platform
Finding your Market
The Navigate window in the Finder panel on the left side of the screen shows you the markets available to trade.
To find a market you can:
- Use the Search box
- Navigate the dropdown menus
- Search the pre-defined Watchlists
To see the daily Forex Binary Options available to you, and choose a market:
- Click Forex (Binary) from the dropdown in Finder
- Select EUR/USD to bring up the contract categories
- Select Daily to display the range of daily contracts
Completing your Ticket
Let’s say you choose EUR/USD > 1.2980 (3PM).
On the Order Ticket you have two options:
- Buy if you think EUR/USD will be above 1.2980 at 3pm
- Sell if you think EUR/USD will be at or below 1.2980 at 3pm
The Underlying (indicative) field tells you the EUR/USD spot rate is currently at 1.29725.
You think the euro will rally against the dollar, so:
- You choose Buy in the Direction field
- You select 2 contracts in the Size field
In the Price field, use the arrow buttons to enter the current Offer price or type it in manually. You can also click on the relevant price shaded in yellow.
- You choose 49.00, the Offer price
Your maximum potential profit and loss are $102 and $98 respectively. Click Place Order to open your positon.
Closing your Binary Option
Now you have an open position, and two options:
- Let the Binary Option expire at 3pm, settling at either zero or 100
- Close your position early, taking a profit or cutting a loss
Closing your position early
In the Open Positions window click the name of your market to display an Order Ticket.
The Order Ticket shows a trade that is opposite to your opening trade, and will in effect close your position.
- Click Place Order to close your position at the current Bid price
In this example, the Bid price is 74.50. This is 25.50 more than your opening price of 49 and, multiplied by your 2 contracts, gives a gross profit of $51.
You can also partially close positions by changing the number of contracts you wish to close in the Size field.
To calculate your net profit on this trade, one would need to account for Transaction Costs.
Learn how to place a US Tech 100 trade using a Binary Option
What are Binary Options?
Based on a simple yes/no proposition, Binary Options offer a different way to trade the financial markets.
See the breakdown of transaction costs associated with trading on Nadex.
Try us out
Open a free demo account and see what you can do on Nadex.