Why should you be looking into Nadex for Friday’s news release? First and foremost because you could be making a lot more money than traditional offshore binary options!
If you are unfamiliar with the Nonfarm Payroll otherwise known as the “NFP” you may be wondering what all the hype is about. The (NFP) is one of the largest news releases in the Forex markets as it provides vital econimic job data to investors. It measures the change in the number of employed people during the previous month, excluding the farming industry.
Now you have many choices in the binary options world in how you wish to trade this news release. However if you have not tried it yet, I invite you to check out Nadex’s regulated platform to try and demo trade the release. They offer two types of options, bull spreads as well as the more classic, binary option.
As this is such a large news release, we expect the markets to move, and move quite a bit. So if you are using a bull spread, you can try and sell near one of the ceilings or buy near one of the floors on a 2 hour option which limits and caps your risk very low, and offers a high reward if you are correct.
(I will be doing my best to try and make a live trading video of this or atleast a guide on Friday.)
The next option is trading Nadex’s binary options contracts. One way that I have traded this in the past was buying 2 separate options, one saying that price would rise, and the other saying price would fall. This might not make much sense, but it has worked for me in the past! So let me provide an example down below as to how this could work.
Let’s say for example if you purchased 50 contracts in total 25 Up on one option, and 25 Down on another at $12 each that is $600 of risk. Now let’s imagine the NFP announcement gets released and one of those spikes up and you are at $45 per contract, then sold it. Now your one option of 25 contracts that you sold is now 25 x $45 = $1125. Then we need to minus your trade which just most likely would be the loser in the scenario which was $300, and fees of approximately $27. So your total profit could have been $798 if you sold it at $45 per contract. Pretty cool right, we were trading both directions! As long as it went hard one way, we were looking pretty good.
Now if we imagine for a moment that we let one of those contracts expire instead of selling early. Those $12 contracts you bought are now worth $100 each. Why $100? Well Nadex binary contracts is all-or-nothing, meaning you get 0 payout, or you get 100. So since we let this one expire and it won, our 25 contracts x $100 = $2500, minus your other trade most likely losing and fees of approximately $27 would be $2173 profit. Pretty neat right?
So if you have not yet messed around with Nadex, even on demo especially during news announcements go check them out right now. You will grow to love them!
Check out Nadex.com by clicking here!