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How Nadex IGindex Binary Options (Binary Options Traded at Exchange) Works?
IN Exchange Binary Options are available as Contracts…You Can see the Assets In Market Forex Stock Indices Commodities or Events Currency Pairs EURUSD USDJPY GBPUSD etc…You Can Choose the Nadex Binary Expiration Time Frames 5 Minutes 1 hour 2 Hour 4 Hour Dally Expiry and Weekly Expiry Time Frames…You Can choose any contract with available Expiry Time Frames, and you can close the trade contract before its expiry or you can wait for expiry…
To Trade Binary Options At Exchange you Need to know about the direction of the asset in the market. If your market analysis indicates the asset price may move towards upwards on a particular time then you have to place Buy Option, or if the asset price may fall down at a particular point, then you have to take Sell Option, If your expectation is right then at expiry you will get full settlement as $100….Here assets are available as contracts..Suppose at present in live market EURUSD available contract prices are from $8 to $97 Per Contract..then you understand that at a particular time the EURUSD Price will move above certain price at certain time frame..then you can take the Buy option and placed the Order for $20 Per Contract, then at expiry if you market prediction is right, then after expiry your contract will settle with $100…that means here you got profits $80 on that contract..You have invested on the Contract $20..and when the contract expired you got $100 as settlement, here you got net profit of $100 - $20 = $80..In this way you can make high profits with low risk capital in Exchange Traded Binary Options…
If you brought 10 contracts with $20 Each..then your total investment of 10 contracts is $20 x 10 = $200…If your asset market move is in your favor and your market move prediction is right, then at expiry you 10 contracts settled with $1000 (Each Contract settlement price is $100)..Here your Net Profit is $800 in one day..($1000 - $200 Invested on 10 contracts)..In this way according to our risk taking profits are depending..If your market analysis is wrong then you will lose the Invested money ($200) on the 10 Contracts , In this way Exchange traded binary Options Are working…
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