Leading binary options provider for US traders Nadex has enhanced its product coverage to cater to the growing number of short-term investors in the region. The firm filed an amendment to its product specification with the regulator in November, further reducing the expiration period on certain contracts. The financial regulator, the CFTC, issued a note on its website confirming the amendment and, thus, the availability of five-minute expiry contracts. The move signifies the growing importance of volatile-prone financial products.
Nadex, a regulated financial trading venue for binary options, provides access to major instruments. In its latest enhancement, the firm has extended its coverage of products.
A recent outburst in volatility in global financial markets has bolstered trading activity across the board, with volumes taking a positive hit. The sharp price movements in financial instruments have given short-term traders fuel, as they explore fast-moving trading opportunities.
The details were issued in a seventy page filing document to the financial watchdog which outlined the specifications for each contract. The new five-minute expiry will be available on four forex pairs – GBP/USD, EUR/USD, AUD/USD and USD/JPY.
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The latest addition follows on from the exchange’s 20-minute expiry contract launched last month on major stock indices, including the US 500, the US SMALLCAP 2000,US TECH 100 and the WALL STREET 30.
Timothy McDermott, Nadex’s CEO, commented about the firm’s developments in a statement: “As the needs of the retail traders continue to evolve, Nadex is committed to offering new products to meet these demands.
“Through researching how our customers trade our current product set, we saw a large demand for shorter-duration contracts. We also expect to welcome a new set of cutting-edge retail traders who are looking for the multiple daily profit opportunities, all at a predetermined risk level, that 20-minute binary options contracts offer.”
In the filing, the venue also outlined some amendments to its calculation methods. The CFTC updated its website on the twelfth of December, confirming its approval of the new contracts.