Binary Options Overview

Simple but Powerful Way to Trade

A binary option asks a simple yes/no question: Will this market be above this price at this time? You buy the option if you think yes and sell if you think the answer is no.

When the trade expires, if you're right, you get the full $100 value. If you are wrong, you’ll get zero. However, you can never lose more than you paid.

Nadex binary options offer you more. You can exit a trade any time prior to expiration, to lock in profits or cut your loss. A simple 4-step process lets you apply all the analysis, intuition, and discipline as any other kind of trading. 

You don't limit yourself to just forex, stock indexes, or futures. Nadex lets you trade multiple markets from one account, always with guaranteed limited risk.

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What are Binary Options?

Will this market be above this price at this time? Every binary option is based on that question. You buy the option if you think yes. Or just as easily, sell if you think no, it won't.

Every binary option is worth $100. The buyer and seller split the cost based on each side’s probability of being right.

When the trade expires, if you're right, you get the full $100. If you are wrong, you get zero, but you can never lose more than you paid. 

How to Trade Binary Options

Trading binary options is a 4-step process:

  • Choose a market
  • Choose a strike price and expiration time
  • Buy or Sell the selected contract
  • Manage the trade until exit or expiration

That process contains all the challenge of trading a trend, with the security of limited risk. Use the same strategies: trend lines, indicators, moving averages, Fibonacci, support and resistance.

Benefits of Binary Options

Nadex binary options offer limited risk and opportunities to profit in flat, trending, and volatile markets.

You know your maximum potential profit and loss before you enter the trade. You never get a margin call.

If the market moves against you, you remain in the trade with only the loss you expected, no more. You will never get stopped out. You exit when you want.