Indicative index value (indicative index, indicative index price, indicative price)
What is the indicative index value on Nadex?
On Nadex, the price quotes are live, but rather than tracking only the most recently printed trade or midpoint, Nadex uses a continuously updated average of the most recent prices.
This price is called the indicative value, index value, indicative index value, or indicative price, since it is designed to accurately indicate the current market price in a way that is useful for traders.
Calculating the indicative price
The calculation is the same one Nadex uses to calculate the expiration value of its contracts (which is compared to the strike price), but it’s done on an ongoing basis during the life of the contract. The indicative index value on Nadex is calculated once per second throughout a contract’s duration, to serve as an indication of the value of a contract’s underlying market at any given point in time. This is displayed for members on Nadex’s charts.