What are NADEX spreads? And How do You Use Them to Profit More than Binary Options?
NADEX spreads seem like they've been largely ignored but what they are is simply a way to trade momentum and make a lot of money doing so.
You can trade futures and Forex, commodities with these NADEX spread which means that you can trade these types of instruments in a much easier way. How is it easier?
Well first of all your risk and reward is pre-set. You know your risk is ahead of time and your max risk is pre-set, pre-known, whereas if you forget to exit a futures or Forex position upon hitting your stoploss point you could lose a lot of money.
Second of all in order to fund your account you simply need a credit card number allowing you to start even with only $100.
You don't have margin requirements which is great and those margin requirements can be annoying. You don't have commissions which can add up with emini futures brokers big-time.
Plus as compared to binary options there is no "in the money" "out of the money" aspect so where you are to spread is what you get at expiration. This means that if you made some gains you get to keep them whereas if you don't make it into the "in the money" position in binary options you lose whatever momentum you didn't make.
So let's say you traded a daily spread and you made seven points with the US small Cap 2000, you get to keep all seven points of profit which are, which on hundred contracts, would be $7000. But let's say he did out of money binary option and seven points did not cut it for the daily binary option to the in the money point well by expiration you lose whatever you put in whereas with the spreads you make $7000. Now that's cool isn't it.