Nadex, the North American Derivatives Exchange, has expanded its offering with eight new knock-outs and ten call spreads, giving traders a new way to speculate on volatility in underlying forex and commodity markets.
Knock-outs, also known as Touch Bracket™ contracts, were innovated by Nadex parent IG Group. Then the concept spread to other brokers who are still offering binary options. In this type of derivatives, the trades outcome is based on the number of pips the assets price moves before you close the position.
Knock Outs are structured to provide a simple entry point to the most popular markets, with a built-in exit strategy on each trade.
Members Can Now Trade Eight New Knock-Outs Based on Forex Pairs and Commodities:
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Unlike traditional spread-bets, Knock Outs have extended expiry length, can be opened or closed at any time as well as built-in risk management attributes that make them a little binary in nature. It involves automatic trigger points as contracts will automatically close if the underlying market price reaches the upper or lower knock-out level.
“These new knock-outs and call spreads form part of our ongoing commitment to bringing traders new opportunities and building out our offering. We strive to provide more optionality, with contracts that will suit different trading styles and strategies,” said Adam McAden, Platform and Product specialist.
Furthermore, Nadex has introduced new call spreads with weekly durations that are worth up to $750, one of the largest dollar value contracts on the exchange.
Weekly Call Spread Durations Have Been Introduced for the Following Ten Forex Pairs:
Nadex remains the only legal way to trade binary options and spreads in the US. The firm, which provides investors with the opportunity to trade stock indices, forex, commodities, economic events and Bitcoin, is regulated by the CFTC as a Designated Contract Market and Derivatives Clearing Organisation.