Executing a trade and managing a position on the new Nadex platform
In this short video, we’ll show you how to execute a trade and manage a position using the Nadex trading platform. Let’s get started.
Once you’ve logged onto your Nadex trading account, in the upper left-hand corner you’ll notice three different types of trading products: binary options, call spreads, and knock-outs. Click on a product, then one of the market classes, and then select one of the expirations beneath one of the contracts. In this example we’ve clicked “Binary options”, “Indices”, and then “Weekly” under “US 500”.
This will display the list of contracts available for that expiration cycle. Once you’ve identified the specific contract you’re interested in, click on it to populate a chart of the product as well as bring up an order ticket on the right-hand side of the platform. Notice at the top of the order ticket there is a specific description for that contract. Here we see “Will US 500 finish higher than” the level we selected.
If you predict the answer to this question is “yes”, click “Buy”. If you think “no”, click “Sell”.
You can further modify the order ticket by selecting an order type, the price at which you want to trade, and the quantity that you want to trade.
In this example, we clicked “buy” and entered a market order.
Notice that the risk/reward for this order is calculated and displayed with maximum potential loss and maximum potential profit before you place your order.
If everything looks good, click “place order” to send the order to the market.
You’ll get a confirmation that your order has been received across the top of the platform. Since we placed a market order, it was executed at the market price and the position now appears in the positions tab below.
Just because there’s an expiration associated with the contract doesn’t mean you need to wait until expiration to see what happens. You can choose to exit the position early in order to either lock in gains or minimize losses.
To exit the position, clicking on the position in the positions tab will bring up a prepopulated order ticket to liquidate the position. Simply click “place order” to send the order to the market. You’ll get a notification across the top of the screen that your order has been received. And if your order is executed, you’ll notice that your position will no longer be listed in the positions tab.
And that’s it. With just a few clicks you’ve executed a trade and managed your position on the Nadex platform, getting you into the exciting action of Nadex prediction markets.
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