Just looking at Nadex for the first time after seeing your post.slowkey wrote: ~~
Nadex is a fantastic exchange for the retail trader. Extremely impressed with it on demo. Very defined risk. Complete transparency. No broker. No stop outs. CFTC regulated just like the CME. Completely fair unlike the bucket shops. Designed from the ground up for the retail trader. Total risk is know before you enter a trade. ~~ Doug
Are you referring to Binary Options or Bull Spreads? I think I could get my head around Bull Spreads.
I see the idea being you can not get stopped out by a spike (whatever the cause) and so long as price comes back your way by the expiry time, you're in the money. You can still manager the trade by closing (early) if price looks like moving against you. The downside is your profit potential is severely restricted.
Is this the general idea?