Below we've answered some of the questions we're frequently asked about trading on Nadex. If you can't find an answer to your question here, please feel free to contact us.
How do I open an account?
You can open a Nadex account online for free, in less than five minutes, 24 hours a day. Visit the Create Account page for more.
How do I deposit to and withdraw funds from my account?
To learn more about how to deposit to and withdraw funds from your account, please visit our Funding/Withdrawing page.
Can I try the platform?
You can open a Demo Account in less than a minute and test drive the platform for two weeks with $25,000 in practice funds. Try a Demo.
How do I use the platform?
Detailed instructions are available via the Help button after you’ve logged in to the platform. You can also learn from examples on this site or view our step-by-step guides to Binary Options and Spreads.
What happens if I've forgotten my login details?
Please contact us and we’ll be happy to help.
Can I change my login details?
Once you've logged in you can change your password as often as you like by visiting My Account > Settings. Please contact us if you would like to change your username.
What happens if I enter an incorrect password?
After too many failed attempts, your access to the online trading platform will be suspended for security reasons. A message to confirm this will appear when you try to log in. Please contact us to unlock your password.
I'm using the correct login details, but nothing is happening.
You may get a blank page when logging in if your browser or security settings are not correctly configured to support our platform. Certain toolbars or plug-ins for Internet Explorer can also interfere with our live streaming data. Please see System Requirements for more information.
Can I use a Mac?
Yes, we support Macs running OS 10.4 and using Safari or Firefox browsers. Please see System Requirements for full details.
How do I enable session cookies?
Our platform and application form use session cookies to store information while you click between different areas. See Cookies for more.
What are your fees?
- Account setup: Free
- Platform fees: None
- Inactivity fees: None
- Trading fees: See Transaction Costs for full details.
How much do I need to fund my account to trade on Nadex?
To open a position, you only need to have sufficient funds in your account to cover the maximum potential loss you could incur. You can open a Binary Option or Bull Spread position with just a few dollars worth of collateral, provided your maximum risk is covered. An initial deposit of $100 to your Nadex account is required after account opening, but there is no minimum account balance that you need to maintain during trading.
How much am I risking when I make a trade?
All Nadex contracts are strictly limited risk, and the maximum risk for any contract is displayed on the order ticket before you confirm the trade. To open a trade, you have to provide your maximum potential loss as collateral, but you can never lose anything more than this amount.
How is the expiration value calculated?
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 Economic Event Contracts:
The expiration value is the figure released by the designated reporting body.
Nadex Bitcoin Contracts:
The expiration value is the last tick before expiration of the Tera Bitcoin Price Index.
The market prices we use to calculate the expiration values for Indices and Commodities contracts are obtained through a data feed from Reuters. If Reuters is unavailable, we may obtain market pricing data through Bloomberg or another data provider that we deem appropriate under the circumstances.
The market prices we use to calculate the expiration values for Forex contracts are obtained through a proprietary data feed ("NadexFX") comprised of quotes from 12 well known banking institutions. If NadexFX is unavailable, we may obtain market pricing data through Bloomberg or another data provider that we deem appropriate under the circumstances.
For more specific details, please see the individual contract in the Nadex Rules.
What is the Settlement Value?
Binary options are cash-settled contracts that settle with an all-or-nothing payout if left to expiration.
- If the condition of the contract is achieved, the settlement value is 100
- If the condition is not achieved, the settlement value is 0
- It is possible to close a contract prior to expiration, either to take profits or cut losses.
Bull Spreads are cash-settled contracts with a variable, linear payout. The settlement value is obtained based on the expiration value and the floor/ceiling levels of the individual contract.
- If the expiration value is at or below the floor level, the settlement value will be the floor level
- If the floor level < the expiration value < the ceiling level, the settlement value = the expiration value
- If the expiration value is at or above the ceiling level, the settlement value will be the ceiling level
Is Nadex regulated?
Nadex is subject to regulatory oversight by the Commodity Futures Trading Commission (CFTC). The mission of the CFTC is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and financially sound futures and option markets.
Who owns Nadex?
Nadex is a wholly owned subsidiary of IG Group, a UK-based derivatives trading company. Find out more About Us.
Where are my funds held?
Member funds on deposit with Nadex are held in a segregated bank account at BMO Harris bank in accordance with CFTC Regulations.
BMO Harris, headquartered in Chicago, is a leader in providing financial services to the futures industry. BMO Harris is an integrated financial service organization providing more than one million personal, business and corporate clients with banking, lending, investing and wealth management solutions. www.bmoharris.com
Is my personal data safe and private?
Nadex takes the security of your personal information very seriously. We use physical, electronic, and procedural safeguards that meet or exceed industry standards. We do not sell or provide your information to anyone other than our service partners (such as our settlement bank) and as required by law or regulation, and we restrict access to authorized personnel and service partners who have legitimate business requirements.
How Do I Log On?
To logon to the Nadex Pro platform, enter your Nadex username and password in the specified fields. Then select either demo or prod from the Connection dropdown, and click on the green Connect button.
How do I select the specific contract that I want to trade?
From the Quick Trader window, the contract selection panel on the left allows you to select a product. You then select the interval and the type of contract from the option chain quote board on the bottom of the page. You will notice that the default setting in the quote board is the daily binary contract for the product selected. You can then use the dropdown to select a different interval, or the buttons to select narrow spread or wide spread contract.
What does the chart show me?
For binary options, the chart displays the streaming indicative price, which is a representation of the underlying market calculated using the same method as the Nadex expiration value at contract expiration. The chart also displays the streaming real-time bid and offer of each binary strike as an overlay. You will see a horizontal line that highlights the specific binary strike that you have selected.
For spread contracts, you will also see the streaming indicative price. But instead of displaying the binary strikes along the right axis, you will see the spread contracts that correspond with either the wide spread, or the narrow spreads, depending on what was selected in the option chain quote board.
How do I buy or sell?
The order ticket is on the top right of the Quick Trader window. You will notice the Sell button displaying the best offer at that point in time, and the Buy button displaying the best bid. Clicking on these buttons will trigger the order type selected, at the limit price that is shown at that time. Please keep in mind that as limit orders, there is no assurance that your order will be filled immediately. It is possible that the market will move before your order hits the market.
How do I know if my order is working?
When you place a working order, you will see your order displayed in the Working Orders tab of the table that is displayed at the bottom of the Quick Trader window, between the option strike quote board and the order ticket. Working orders are also displayed on the line that corresponds with the contract on the price chart. The working order will be displayed on the chart as buy/sell with the quantity of the position.
How do I know when my order gets filled?
When your order is filled, you will see the position displayed in the Positions tab of the table that is displayed at the bottom of the Quick Trader window, between the option strike quote board and the order ticket. Filled orders are also displayed on the strike price line that corresponds with the contract on the price chart. The filled order will be displayed on the chart as long/short, the quantity of the position and the current p/l for the trade.
How do I know where my order sits in relation to the book?
When you place an order with the Quick Trader order ticket, you can look for your order in the grid below the Buy and Sell buttons that shows the market book. Please keep in mind that this window only shows the five best bids and five best offers. If your order is not in the five best bids or offers, then you will not see it displayed in this section.
The advanced order ticket displays the complete book, as well as your working orders. If you click on “Advanced” button at the bottom of the order ticket, you will see this order ticket.
How do I modify an order?
There are a number of ways to modify working orders. From the Working Orders tab, you can right click on the order that you wish to modify, make the changes that you wish to make, and enter the order with the new parameters. If you use the Advanced order ticket, you can also modify your order by placing your cursor over your order in the bQty or sQty columns, left clicking on that order, dragging your order to your new price, and releasing it.
How do I know what my maximum profit or loss is on a trade?
Each order ticket displays the potential profit or potential loss (excluding fees) for a trade based on your limit order price and the quantity you have selected.
What are Bitcoins?
Bitcoin is a type of crypto-currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
Can I fund and/or receive Bitcoin from Nadex?
No, Nadex does not allow deposits or payments in bitcoin. Nadex Bitcoin binary options are only speculative trades on the underlying value of the currency.
How is the value of Nadex Bitcoin binary options determined?
Nadex Bitcoin binary options are based off the Tera® Bitcoin Price Index.
What time do the daily binary options reopen for trading?
Please check our contracts specs page.
Does Nadex offer spread contracts on Bitcoins?
No, Nadex only offers Bitcoin binary options.
How does Nadex provide income tax related information?
Nadex provides information on Form 1099-B to help you with your income tax compliance requirements. The information provided is based on your activity on Nadex. Per the CFTC, Nadex’s instruments are considered “commodity options” categorized as “swaps” for regulatory purposes. This may or may not be consistent with IRS categorization for tax purposes. Further, the information contained in the Form 1099-B may not be applicable to or suitable for the individuals' specific circumstances or needs and may require consideration of other matters. Accordingly, we suggest strongly that you consult with your personal tax advisor before making any filings with the IRS.
When should I expect to receive my 1099-B?
In general, Form 1099-B and the related frequently asked questions and answers are mailed to members no later than February 15th (or next business day if the 15th is a holiday or weekend) of the year following the calendar year in which the activity took place.