Successful Trades Take 4 Simple Steps
Nadex platforms make trading binary options straightforward. From one platform, you can trade thousands of contracts a day on a wide range of global markets. Few if any other platforms offer such wide trading opportunities.
Trading binary options is as simple as choosing a market, expiration, and strike price. But the way you make those choices involves all the analysis, intuition, and discipline as any other kind of trading. Nadex binary options are another—in some ways better—way to trade your way.
1. Choose your market and expiration
Once you’ve opened the platform, start by looking at the Finder panel on the left side. There you’ll see a menu of all the markets currently available to trade.
You can find a market using the search box or browse the dropdown menus in the Finder. Below the Finder you’ll see the watchlist panel. You’ll find preset watchlists available. You can also make your own custom watchlists to track the markets you prefer.
Different traders have different ways of selecting markets to trade. Some look at charts, some look for the biggest movers, some have favorite asset classes like currencies or stock indices. Whatever your approach, you can select a market and then choose an expiration and time frame from as short as five minutes (in forex) to as long as one week or until the next economic report.
2. Choose your strike price
The basic question a binary option is based on is, will the market be above this line at this time? The answer, yes or no, determines whether you buy or sell the option.
This is where you bring your own skills of analysis as well as your intuition, to decide what levels will be pivotal in the market’s movement, what range it may cover, and what the trend may be.
The Nadex platform offers robust charting and technical analysis tools, including the most popular indicators and drawing tools. Our powerful ladder charts, with buy and sell buttons aligned with the strike prices on the right side of the price chart, let you place orders while watching live charts. You can move from the chart to order placement, all in the same window.
3. Place your order
We designed our order ticket to make order placement simple and safe. Click on the contract and strike price, or the buy or sell button on the chart, and an order ticket will pop up.
The ticket will show you the live bid and offer price. Click buy if you think the option will be above the strike price at expiration, sell if you think it will be at or below the strike. The matching bid or offer price will be auto-filled.
Adjust the price and number of options, and the maximum profit and loss automatically update. You’ll know your risk/reward up front.
Run through the checklist one more time: expiration, strike price, buying or selling, number of contracts, max profit and loss.
If everything looks the way you want, click Place Order. When your order is filled, you will have an open position. Nadex will never take the other side of your trade.
4. Manage your trade until expiration or exit early
You have two ways to close your open position: hold it until expiration or exit early. The choice is yours. The platform makes it straightforward to act on your decision.
If you decide to hold until expiration, you just need to wait. Your options will settle at either zero or $100 each.
If you choose to exit early, either to cut your losses or take profits early, a second order ticket makes it simple to do.
Let’s say your position is losing money. Your binary options can never lose more than you paid for them, but in some cases, you may want to get out with a smaller loss. To do that, click on that contract in the Open Positions window.
A new order ticket will pop up that is opposite to your opening trade. Click Place Order to close your position. As with the first order, you can take the current market price or set the price you want to pay.