By Darrell Martin
The fever-pitch popularity of Exchange-Traded Binary Options (ETBOs) has maintained growth in record levels at Nadex-The North American Derivatives Exchange. Comparing second quarter 2016 to second quarter 2015, overall trading volume and total number of trades grew by almost 40 percent. This is a direct reflection of day trader’s awareness of, and enthusiasm for ETBOs and spreads, taking them mainstream.
Throughout this record growth cycle, Nadex increased the number of markets to trade and added different contract times, including 20-minute indices and 5-minute forex binary options. Since 2013, the number of daily contracts offered doubled from 5000 to over 10,000 in 2016. Nadex spread trading volume accounted for approximately nine percent of the second quarter year over year growth and continues to grow in popularity as well.
In response to the record growth, Nadex has added yet another new market maker. The result is deeper FX binary options markets having enhanced liquidity with more markets expected in the near future. “In addition to a clear increase in awareness of our products and services among our target market, we’ve seen a surge in searches for “binary options” and “Nadex” over the last year,” said Dan Cook, Nadex’s Director of Business Development.
Nadex is the leading US exchange for binary options and spreads. The record growth should be no surprise. There has long been a need and demand for new methods of trading that have capped or guaranteed limited risk. Nadex provides an alternative to the usual trading of FX and futures through a brokerage. Trading on Nadex means traders get that limited risk with binary option and spread trading on a regulated exchange.
Second quarter saw the following markets most heavily traded: EUR/USD, USD/JPY, AUD/USD, and GBP/USD forex pairs, the US 500 based on the underlying E-Mini S&P 500® futures market, along with other US and international indices. Greatest increase in commodity markets was in crude oil and gold futures.
More Powerful Full Featured Mobile Apps
Traders have the convenience of trading on Nadex away from their computers and on their mobile devices. Nadex saw the advantages of this flexibility for traders and made major upgrades to the apps for iPhone and Android. Nadex mobile apps allow traders to send orders directly to the exchange, manage them, receive live exchange data, fund an account, chart, browse contracts from various markets, as well as do analysis, all from their mobile devices.
“Our growth comes from multiple factors,” said Tim McDermott, CEO of Nadex. “More markets and more contracts within each day mean more opportunities. Powerful and full-featured mobile apps mean a new way to access those opportunities wherever you are. And increased awareness of Exchange-Traded Binary Options means that more people are coming to us to take advantage of those opportunities. So in short, we’re gratified by our growth, but not really that surprised. Limited-risk trading on a regulated, level playing field is something traders have needed for a long time and we’re happy to offer it.”
Being the first CFTC (Commodity Futures Trading Commission) regulated online exchange, Nadex is also the largest in the US, providing binary options and spreads for traders looking for security and limited risk while trading. Traders have a full selection of markets, most heavily traded to choose from and trade, including forex, commodities and stock indices. Nadex provides traders full flexibility and convenience, having both online and mobile platforms. Traders can catch and trade short-term price movements in markets and Bitcoin, on economic news events, with Nadex’s limited risk binary options and spreads with hourly, daily, and weekly contracts. Members can also feel secure knowing their funds are segregated and held in US banks.
Free trading education on how to trade Nadex binary options and spreads is available at Apex Investing.