Nadex platform is easy to use, although not as well designed as those belonging to European brokers. The entire interface reminds much of MS Windows, but generally speaking, it is user-friendly. One of the most useful features is the welcome note that appears every time a trader logs in. Nadex automated trading does not exist so don’t get fooled if someone promises something else.
Besides the desktop platform, our Nadex review showed that they offer a mobile platform that is available as an app for iOS and Android smartphones and tablets. The app enables tracking of the financial market, customizable trading charts, watchlist creating, and fast and easy trading no matter where the trader is. Mobile apps are always a great addition to the portfolio, but Nadex app doesn’t offer anything that isn’t offered in the desktop version of the website. It does come in handy when a personal computer is out of reach.
Options offered by NADEX are High/Low and Long Term, as well as Nadex Call Spreads. There is no opportunity to trade 60 seconds or One Touch options as the shortest expiry time is 5 minutes. On the other hand, traders have the opportunity of early close in case they realize they made the wrong prediction.
NADEX Knock-Out™ Contracts
Knock-Out ™ Contracts are a new type of a contract offered on NADEX, they were introduced at the end of 2018 as Touch Bracket™ Contracts. These contracts allow traders to try to predict price movements in the pre-defined range which is set with floor and ceiling price levels. With floor and ceiling levels defined, we have the maximum boundaries for the contract. The contract expires when the price index of the underlying market touches (and/or surpasses) the price levels. The maximum duration is one week – meaning if the price does not touch the floor or the ceiling, the contract will expire based on the predefined expiry time.
Each week, NADEX will list four knock-outs with unique ranges floor to ceiling, per underlying market. These are specifically designed with historical price range movements for the underlying market, with the floor being the lowest point the contract can trade, and the ceiling being the highest point at which the contract will settle.
How to trade NADEX Knock-Out™ Contracts?
Like with other contracts – if the trader believes the market will rise, they choose to buy, if they believe the market is about to fall, they enter sell position. As the knock-outs are touched/surpassed, the contracts settle at those levels, otherwise, the settlement level is the level of price reached at the moment when the predefined expiry time is reached at the end of the week, depending on the contract specs. The payouts depend on the difference where position was bought/sold and the settlement price. Knock-outs do set fixed price settlement levels, however, if they are not touched, the payout will depend on the price at the time of expiry and is considered variable.
With knock-outs in play, the max reward and max risk are already known, since they define the floor and ceiling price levels for the settlement. If you enter position at X, and knock-outs are defined as +/- 20 points around the X, the trader knows that the 20 points are maximum risk and the max reward.
Example: If the buy position was entered, the trader knows that the max reward is the difference between the ceiling and the price level when the contract was bought. If a sell position was entered, the reward is the difference between the price at which the position was entered and the floor price.
Since the knock-outs are not always set asymmetrically, the trader can choose to focus on lower risk and higher potential reward, and vice versa simply by choosing the knock-outs.
Another important info about this instrument is the fact they use micro lot sizes meaning the capital requirements are low which makes this instrument accessible to more traders.
NADEX Call Spreads
Call Spreads are an interesting twist to online trading. Most of the time, people prefer to time bottoms or tops and use stop-loss and take-profit functionality to adjust their risk preferences. The issue with this technique is that the market might temporarily move against the trader short term, but eventually turn to how the trader predicted. In this case, the limiters will close the trade and an opportunity will be missed. With Call Spreads, NADEX introduces a contract where floor and ceiling levels are set, however, they do not trigger the trade to be closed. The trade stays open, however, the losses or profits are not accrued after those levels. This buys time for traders who firmly believe their predictions will come true. It allows to stay in the game even after the limits have been breached, until that time when the traded decides to close the trade or the predefined expiry time is reached.
NADEX Underlying Markets
Nadex offers traders products in markets of forex ( 11 currency pairs), stock indices (8 indices) and 7 different commodities.
Nadex Auto Trader
Nadex auto trader does not exist. However, traders can take advantage of the NADEX Mobile – NadexGo.
The Nadex mobile trading platform was just updated at the end of 2018. NadexGo is the newly redesigned progressive mobile app (PWA) that is synced with the desktop platform. This means the trades made are visible on both NadexGO and your desktop at the same time, and it even allows to start trading on desktop and continue to track trades on mobile, and vice versa.