Trading Binary Options is one of the most popular methods, but creating a lucrative and long-term income is challenging without the correct platform. That’s why we need to have a look at what Binary Options Exchanges have to offer and what a good exchange is all about. In this article, we want to introduce you to the Binary Options Exchanges and want to give you more information about the Nadex Exchange.
Are brokers and exchanges the same?
The term “exchange” can be challenging to understand as a beginner since brokers have a similar goal. Fact is: Brokers and exchanges are not the same, BUT they are similar. If you already have a broker, you know that you have set prices for your assets depending on the market. For example, if a particular stock, for example S&P 500, has a lower price than usual, this is a great way to buy in and later on sell the stock higher. It is an easy principle that exchanges take to the next level. While in a brokerage, you just sell and buy in your brokerage with a fixed price, an exchange offers multiple people to trade by placing offers. Therefore, you have to pay not one set price when you buy an asset. And at the same time, you will always sell your assets at the price that you prefer. This means, if a buyer wants to buy your S&P 500 for example 1500, you can decide if you will take the offer, or not. The buyer can only place a bid, but this doesn’t mean they will buy it at this price if the seller disagrees.
Trade Binary Options at the Nadex Exchange
Even though trading Binary Options is a popular method for many people, this method is still not offered at every exchange. That’s why you need to look out for platforms with this feature. One of the suitable platforms is Nadex. This Binary Options Exchange will give you more freedom in deciding at what price you want to buy or sell assets, rather than depending on a broker. You are not sure if using Nadex is the right choice for you? Don’t worry; we will give you more information about this Binary Options Exchange platform.
What is Nadex?
Nadex, also known as Northern American Derivatives Exchange. It is an exchange focusing on Binary Options. This Chicago-based company started in 2004 and has now been one of the most popular exchanges for Binary Options. One of the perks of Nadex is that you can trade here a wide variety of assets, for example, forex and stocks. This platform also offers a membership, which will allow you to trade but also gives you helpful analysis, market depth, and data to get a better feeling of the market and to be able to determine the outcome of your trades. The best thing is, the membership is free. You only need to sign up and deposit a minimum of 250 dollars into your account. Be aware that Nadex doesn’t offer the option to trade on margin. You have to pay the money you want to trade; therefore, Nadex makes traders fund the maximum risk. If you can’t do that, you won’t be able to trade. But Nadex doesn’t come fully for free since you have to pay a dollar for opening a possible trade and another dollar for closing it.
We hope this article was informative and you got a better understanding of what Binary Options Exchanges are and can decide if Nadex is the right choice for you!