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Trade Bitcoin with Limited Risk
Nadex Bitcoin Spreads let you trade the price of Bitcoin (based on the trusted TeraBit IndexSM) within a range, between a floor and ceiling price.
As the price of bitcoins varies up and down, the Bitcoin Spread's value moves as well, but with limits. If the underlying price of Bitcoin moves up above the ceiling or below the floor, the value of the spread stops moving and remains at its upper or lower limit (depending on whether you are a buyer or seller).
In this way, your risk-reward is always limited and remains within a range you define. One limit is your profit target. The other is your guaranteed protection against unlimited losses.
Trade all the markets you love
One good innovation deserves another
Since its beginnings as a radical new form of money based on new blockchain technology, Bitcoin has gained mainstream acceptance and soared in value. More traders than ever want to participate in the Bitcoin phenomenon.
However, you need protection from the volatility of the Bitcoin market. Many of the ways to trade bitcoins can expose you to large or unlimited risk.
Nadex Bitcoin Spreads allow you to take short-term positions on the price of Bitcoin, with risk-reward protections built in. This innovation allows you to limit your risk exposure, guaranteed.
They offer a way to trade the price of Bitcoin, without buying and selling the bitcoins themselves. No "mining," no risk exposure outside your comfort level—you can just trade with all the benefits of the Nadex exchange: limited risk, transparent price, and CFTC regulation.
How trading fees work for Bitcoin Spreads
You pay a trading fee on each side of your trade: one fee to open the trade and another to close (in most cases; see below).
To enter a trade, you will be charged $2 trading fee per contract.
You can exit the trade in one of two ways:
- Place a second, opposite trade to close before expiration
- Let the spread contract expire
If you exit the position before expiration, you’ll be charged a $2 trading fee per contract.
If you hold a Bitcoin spread position until expiration and incur the maximum possible loss, you will not be charged a settlement fee. Specifically, that means:
- If you're a buyer: the underlying Bitcoin price is at or below the floor (lower) price of the spread
- If you're a seller: the underlying Bitcoin price is at or above the ceiling (upper) price of the spread
In all other cases, you’ll be charged a settlement fee of $2 per contract at expiration.
In short, fees for Bitcoin Spreads are assessed the same way as other Nadex Spreads, but the fee amount is $2 rather than $1.
Bitcoin Spread Fees
|Open Position||$2 per contract
Max position limit 50 contracts
|Close a Position (Prior to Settlement)||$2 per contract
Max position limit 50 contracts
|At Settlement||$2 per contract expiration fee
Max position limit 50 contracts
*Note – At settlement if the value of the spread is less than the settlement fee, the lesser value will be used as the fee to the exchange.
Frequently Asked Questions
Look in the Finder window at the left and click on Cryptocurrency > Bitcoin > Weekly.
The underlying market for Nadex Bitcoin Spreads is based on the TeraBit IndexSM from TeraExchange. For more information about TeraExchange and their cryptocurrency benchmark indices, click here.
Yes, the price of the underlying market (Bitcoin) will be displayed in the markets window in the Indicative Price column. You can also view live charts to track and analyze current and historic market prices. Click on the stairstep icon in the Charts column.
** Please note, the indicative underlying index will not be available from 6:45 to 7:00 PM ET during exchange maintenance.
The Nadex Bitcoin spread contract will have a duration of 1 week.
You can trade Bitcoin Spreads from Monday 8 AM ET to Friday 3 PM ET, except between 5 and 6 PM ET when the exchange closes for maintenance.
The Nadex Spread is a weekly contract. Each week, Nadex assesses current market levels and conditions to create a spread range that will bring our members the best possible trading experience. As such, the range and overall contract value may vary from week to week.
The total value of the Nadex bitcoin spread may vary depending on market conditions and the width of the range between the floor and ceiling of the contract. However, when you place a trade, you will always be able to see and select your maximum risk and profit potential on the order ticket, before you place the trade order.
The minimum tick size is $5.00 in the underlying Bitcoin market. That represents the smallest increment the price can move. The tick value of the Nadex Bitcoin spread contract is $0.50. Thus the effective value of the Nadex Spread contract is 1/10th the point value of the underlying Bitcoin market. Our goal is to provide an affordable way for our members to trade Bitcoin. For additional contract specifications, please visit this page.
The Bitcoin Spread contract is settled to the last tick prior to expiration as provided by the TeraBit Index.
During the launch period, members may enjoy reduced fees of $1 per contract to enter a trade and another $1 to exit at or before expiration. However, Nadex will waive your settlement (exit) fee if the market settles below the floor price (for long positions), or above the ceiling price (for short positions). Thus, your maximum possible fees would be $2 a round-turn per contract. After the launch period, the fees will be $2 per contract on entry and another $2 to exit at or before expiration. Nadex will still waive the settlement fee for trades which incur the maximum potential loss.
If the volatility of the market pushes the underlying price near to or past the floor or ceiling of the contract, Nadex may, at our discretion, list an additional spread contract suitable to current market conditions.
No. You do not need a digital wallet. You just need a regular Nadex account, funded in US dollars. We hold member funds in segregated accounts in secure, top-tier US banks. Nadex Bitcoin Spreads are cash-settled and don’t involve the exchange of physical bitcoins. To put it simply, you will buy and sell the contracts using US dollars and be able to withdraw funds from your account (after a short initial waiting period) in US dollars at any time.
Nadex is regulated by the Commodity Futures Trading Commission (CFTC), and all trading on Nadex, including Bitcoin Spreads, is subject to CFTC regulatory oversight.