The Gateway to Understanding Trading

In Blog by Michael Arnold

understandingThere’s a lot of email hype around Binary options today. It’s starting to seem similar to a time when the Forex markets got a bad name because of marketing hype. Similar to the Forex markets, the issue is the hype, not the market. The retail trader needs to separate the market from the message. Nadex is a legitimate exchange, with regulators housed in the same offices as those of the CME group, because they are in fact the exact same CFTC regulator. The main difference between Nadex and the CME group is Nadex options have a unique design, making their suite of products the perfect training ground for the beginning or casual day as well as a legitimate complement for the seasoned trader.

Binary options are indeed, options. You can execute trades with very favorable reward to risk ratios at either end of a chart “band”, synthetically take in premium, or put on directional plays with very little theta risk (but still with limited price risk)  all in the same product. While these may sound like complicated options trades, the structure of Nadex options makes them very easy to understand. Volatility increases and decreases are as easy to discern as red bars versus green bars on a candlestick chart, when you know what to look for. Trading Nadex options opens the door to good trading behavior, while simultaneously teaching some option basics as you trade. They are the gateway to understanding trading in a way that no other product can do, and the beauty is, these lessons are built into the products. So forget the hype, study the actual market place and get involved. Nadex is the place to start your trading career.

Futures, options and swaps trading involve risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results