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FSB and FST vs Ctrader
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Author:  123Reverse [ Tue Jun 18, 2013 7:19 am ]
Post subject:  Re: FSB and FST vs Ctrader
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
Just looking at Nadex for the first time after seeing your post.

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?
Author:  123Reverse [ Tue Jun 18, 2013 7:28 am ]
Post subject:  Re: FSB and FST vs Ctrader
Another question.

In their E/U example (http://www.nadex.com/spot-forex/bull-spreads.html) the ceiling and floor are set so you can lose 40% more than you can make! Is this just a bad example or do you have to trade that way?
Author:  slowkey [ Tue Jun 18, 2013 2:21 pm ]
Post subject:  Re: FSB and FST vs Ctrader
123Reverse wrote:Another question.
v
In their E/U example (http://www.nadex.com/spot-forex/bull-spreads.html) the ceiling and floor are set so you can lose 40% more than you can make! Is this just a bad example or do you have to trade that way?
If you want to learn about this go to Apexinvesting and get a free basic membership and spend sometime with the spread scanner. You will also need a Nadex demo running at the same time. The scanner pulls off the spreads on nadex based on your criteria. It will give you your BE, Profit Potential, and many other stats on each spread. There is a learning curve and that example will not take you very far.

For example on the scanner right now there is this spread. I will explain.


305 250 EUR/USD 1.3380-1.3630 (3PM) I
1.3395 / 1.3398 Buy 13 -18.9 230.2 12.18

The expiration is in 305 minutes. It is 250 pips wide. It is a EUR/USD spread and going long the floor is 1.3380 price direction is a buy. It is 13 pips from break even. Maximum risk is only 18.90 and profit potential is 230.20 dollars for just 1 contract. The risk to reward ratio is 12.18 to 1. Try getting that in spot forex. More like 1200 percent potential.

If you want to discuss more I have a topic in general discussion area Nadex. I want to be able to keep Boldtrader on topic here.
Doug
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