Glossary
We've compiled this glossary to help you understand some of the terms and phrases associated with our unique products, as well as others that are commonly used in financial trading.
Expiration, Expiry, Expiration Time, Expiration Date
The point in time at which the Expiration Value is calculated. For most Nadex contracts, exchange members can leave orders to trade right up until this point. However, please note that some Events markets may close prior to Expiration.
Expiration Value
The calculated level of the underlying market at Expiration, as determined by Nadex (except for Economic Events where it is determined by the relevant source agency). Nadex uses the following processes to calculate Expiration Value:
Nadex Stock Indices and Commodities Contracts:
 Take the last 25 trade prices in the underlying market
 Remove the highest 5 prices and the lowest 5 prices
 Take the arithmetic average of the remaining 15 prices and round to one decimal point past the point of precision of the underlying market (with the exception of Wall Street 30, which is rounded to the same point as the underlying market)
Nadex Forex Contracts:
 Take the last 10 midpoint prices in the underlying market
 Remove the highest 3 prices and the lowest 3 prices
 Take the arithmetic average of the remaining 4 prices and round to one decimal point past the point of precision of the underlying market
Nadex Bitcoin Contracts:
All Nadex Bitcoin binary options are settled by the last tick before expiration of the Tera® Bitcoin Price Index.
Floor/Ceiling levels
The lower and upper limits against which the expiration value is compared in order to produce the Settlement Value. The Settlement Value cannot be below the Floor or above the Ceiling.
Floor/Ceiling range
The distance between the Floor and Ceiling values. The size of the Floor/Ceiling range may vary from time to time according to conditions in the underlying market.
Last Trading Day
The date on which trading on the given contract stops.
Lead Month/s
The specific futures month of an underlying market that the contract is based on.
Market Order with Protection (MOP)
An order type with a builtin tolerance range, outside of which you can’t get filled. The default range is $10 for binary options and $3 for spreads. You can adjust those numbers in My Account/Settings/Preferences. A MOP will be filled in whole or in part immediately, or get cancelled. It will not remain on the order book like a limit order.
Master Spread, Spread Contract
For nonforex Bull Spreads, a Bull Spread contract with a large Floor/Ceiling range.
Nadex Indicative Index Value
The calculated level of the underlying market, as determined by Nadex (for all markets except for Economic Events). Nadex uses the following process to calculate the Nadex Indicative Index Value:
1. Take the last 25 trade or midpoint* prices in the underlying market
2. Remove the highest five prices and the lowest five prices
3. Take the arithmetic average of the remaining 15 prices and round to one decimal point past the point of precision of the underlying market (with the exception of Wall Street 30, which is rounded to the same point as the underlying market)
*Midpoints apply to forex, last trades apply to other contracts.
Narrow Spread
For nonforex Bull Spreads, a Bull Spread contract with a small Floor/Ceiling range. These are generally offered as a series of three contracts with overlapping Floor/Ceiling ranges, covering the full range of the master spread between them.
Number of Ranges
The number of different Floor/Ceiling ranges that are offered for a particular market.
Number of Strikes
The number of different strike prices that are offered for a particular market.
Settlement Value
The level at which a contract is settled, based on the Expiration Value and any relevant parameters of the contract (e.g. Floor/Ceiling levels for Bull Spreads).
Binary Options must have a Settlement Value of either 0 or 100. Bull Spreads must have a Settlement Value no lower than their Floor level and no higher than their Ceiling level.
Source Agency
In the case of economic events, the publisher of the Expiration Value (e.g. for Nonfarm Payrolls contracts, the source agency is the Bureau of Labor Statistics).
Speculative Position Limit
The maximum aggregate position that any person can hold or control in any particular contract class.
Strike Price
For Binary Options, the level against which the expiration value is compared in order to produce the Settlement Value.
Strike Width
The distance between strike prices for a particular market.
Tick Size, Point Size
The incremental price movement that corresponds to a profit/loss equal to the Tick Value per contract. (For example a tick size of 0.01 means that a movement of 0.01 in the price equates to a profit or loss equal to the value of one tick).
Tick/Point Value
The value of one tick/point. This is $1 for all Nadex contracts.
Trading Day
On Nadex, trading days start the previous evening and continue through the full trading day that follows it.
Trading days always start at 6:00pm ET, Sunday through Thursday. They continue without interruption until 5:00pm ET the following day, Monday through Thursday, and until 4:15:00pm ET on Friday.
Trading Day  Open  Close 

Monday  6:00pm ET Sunday  5:00pm ET Monday 
Tuesday  6:00pm ET Monday  5:00pm ET Tuesday 
Wednesday  6:00pm ET Tuesday  5:00pm ET Wednesday 
Thursday  6:00pm ET Wednesday  5:00pm ET Thursday 
Friday  6:00pm ET Thursday  4:15pm ET Friday 
Saturday  Closed  Closed 
Trading Hours
The times of day during which the contract will be open for trading on the exchange.
Underlying Market
The source market that expiration values are based on.
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North American Derivatives Exchange, Inc.
311 South Wacker Drive
Suite 2675
Chicago, IL 60606