We hear or have seen a number of different binary options firms pop up on the Internet lately. Most are overseas, in Europe or other countries and some are regulated in Europe or regulated in different countries by their own mechanism. There is one binary options firm, which is actually a binary options/spread trading exchange here in the United States that’s is a true regulated exchange for binary options. Its an exchange like any other exchange here in the U.S. and follows the same strict and transparent regulations. Nothing is hidden or over the counter and that is NADEX- North American Derivatives Exchange. The other firms promise you to make up to 70-80% on a trade. That’s sounds great but there are a lot of catches with that.
First off it seems 70-80% is the highest you can make where as on NADEX you choose the risk and reward. If you want to make 200% you can if you want 400% you can, and the more you want to make the less risk you actually have to take. Why is that? Because on NADEX you have a choice of strike prices to pick from some in the money, at the money and out of the money. Where as at the other firms, you can only take it at the market at that specific time and only for an hour. So its more of a gamble.
On NADEX you have a bunch of different strikes at different levels of risk and different levels at being in the money, at the money, or out of the money and it expires when the exchange closes for that particular product. This way you have the time to see a true trade or setup develop and you are not trying to beat the clock for an hour. NADEX is a true traders binary option firm. Also you have the option to trade in and out of the binary, it is not necessary to hold till expiration to be profitable on the binary option at NADEX. You can trade in and out at anytime.
Once you buy or short an option and it moves in your direction, the binary option price will move with the market long or short and you can take profits accordingly. So your never locked in, you can set stop losses in your head of where to get out so if you risk money you are not risking the full expiration price, you can actually put money and risk controls in effect with NADEX and you cannot with the other firms. You are locked in with the other firms, more like a sports bet where you bet your money and your locked in win or lose! That’s hard to swallow and not the way of a trader.
For example you buy a binary to expire over a certain price at NADEX and it gets real close and even over that strike price, but you still have hours left till expiry and not sure if its going to stay there or not, so you sell out and take the profit on the trade while it is over the strike price. Then all of a sudden it starts tanking and expires below the strike, if you held till expiration you would have lost everything you put into that trade, but since you were able to sell out you made a profit on the trade, even though it expired below the strike. If that was another firm, you would have lost and not have had the chance to get out. That is a huge difference in you making a career out of this or not. If you want to make a career out of trading and binary options, we know it is hard enough, why add to the mix. We want to give ourselves the best possible chance to make a living. That’s why NADEX is the best choice for traders whom are new or whom are veterans looking for a great way to trade with low risk and a transparent exchange.
We have an exchange that hosts the binary options and a separate market maker making markets, and soon there will be more market makers to come which will only enhance the trading done on the exchange. They are CFTC regulated like the CME or CBOT and they are located here in the United States in Chicago. I personally trade with them and love binary options and I have traded with different firms all over the world to see what the differences are. I am not affiliated with NADEX and do not work for them just to make that clear.
If you want more info please feel free to email me at [email protected] or visit us at [http://www.tradingyourplan.com] We can help.