Learn Nadex Spreads
Trend-follower, reversal or breakout trader—whatever your style, Nadex spreads may be right for you. Spread contracts have a lower and upper price level, known as the floor and ceiling, which create a trading range. Whether you're bullish or bearish, your risk stays within the limits of that range.
Because you have limited risk, without the use of stops, you don’t have to time your entry perfectly. Imagine total risk control without ever being stopped out again.
Every trader has had the experience of being right, but entering too early, getting stopped out, then watching the market turn back in their direction while they sit on the sidelines. With spreads, you are effectively buying time for the market to prove you right.
Within the floor-to-ceiling range, spreads move in close correlation with the underlying market. When the market moves up or down, so does the value of the spread. Because of this correlation, spreads make an excellent hedging tool. You can exit your trade anytime up to expiration, to lock in profits or limit losses.