This either/or outcome is why they’re called binary options. Here’s a quick rundown on what those are:īinary options: Contracts with only 2 possible outcomes based on a yes or no question, for example, will the price of silver be above $28 by December 2020? If held to expiration, the contract either expires out-of-the-money (OTM) and you get $0 or in-the-money (ITM) and $100 per share. Nadex offers 3 different types of trading instruments: binary options, knock outs and call spreads. A demo account is available for anyone on the fence about signing up and plenty of platform tutorials can be accessed through the Learning Center.
Tutorials and demo account: A learning curve is expected when trading complex instruments on a new platform, but Nadex doesn’t want new clients to feel overwhelmed. Novice traders will appreciate knowing that the person taking the other side of the contract doesn’t have a technological edge. 
One universal platform: This may be a negative for experienced derivatives traders, but Nadex operates on a single browser-based platform no desktop, no mobile app. Nadex has a 5-minute, 5-step process for signing up that will get you up and running quickly. Easy onboarding: Signing up for a new account won’t require 1 hour of online forms or tedious web portals. Thankfully, Nadex does well to ease new clients into the platform and provides lots of help to get them on their feet. When it comes to binary options, you either win or lose - there’s no in-between. You don’t need to be a 20-year veteran of the derivatives markets to open a Nadex account, but you do need to understand how these instruments work and what your own personal risk tolerance is. You’ll get a glossary, tutorials, webinars and blog articles explaining everything from the basics to individual trading strategies and market insights. Quality educational tools: The learning center is loaded with quality educational materials, which is a must when trading derivatives that the larger trading public is unfamiliar with. 
But Nadex is regulated by the CFTC and clients can rest easy knowing that it’s in the best interest of the exchange to facilitate fair and honest trading. This of course results in all kinds of scammers and frauds joining the fray. Trustworthy counterparties: Many traders cringe when they hear “binary options” because complex derivatives are often harbored in unregulated areas.Stock indices, commodities, currencies and macroeconomic events can be bought and sold using binary options. Wide variety of tradable markets: You can’t trade typical securities like stocks, ETFs or bonds on Nadex but you can access plenty of different markets through options contracts.
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