Let's start with the basics. With all the different providers out there offering their versions of "binary options," it's important for you to know what true exchange-traded binary options are, how we calculate their prices, and the risks and rewards you can expect in your trading.
Nadex is a CFTC-regulated exchange, so we don't take part in trading and we have no vested interest in the outcome. Our business depends on cultivating successful traders who stay with us for years and prosper. That's why we take education so seriously.
In this first course, you'll learn what binary options are. You'll learn about the benefits of capped risk as well as capped profit. Believe it or not, there are advantages to not expecting "unlimited profit" from any trade. You set a target and have an exit strategy, which is crucial to successful trading.
Finally, you'll learn about the factors that go into a binary option's price, like time and volatility. Those same factors should be a part of your trading strategy.