Nadex pricing more expensive in live than demo account

#1

Hi All,

I recently opened a live account with Nadex and noticed that the binary options pricing is more expensive in the live account than in the demo account. I saw some other posts on this topic (Nadex pricing inconsistent between DEMO & LIVE!, Nadex Demo gives better strikes and prices than LIVE account), which seemed to conclude that these were just temporary data issues that Nadex was experiencing. However, this does not seem to be the case. I emailed Nadex, and this was their response:

“As members are risking real money in the Live platform and they are not in the Demo, you should expect to see differences in the bids and offers between the two platforms.”

How can you develop a consistent winning strategy in the demo account if the pricing is different in the live account? Doesn’t that defeat the whole purpose of the demo account? How have you all dealt with this?

#2

Demo uses a static feed whereas live is based off of actual expected volatility. If the pricing doesn’t work for your system(s) then you may not have any trades for that day. Such as with spreads, sometimes the proximity is super high on all of them, making everything except maybe premium collection and low risk with large expected moves difficult to trade. (although now touch brackets have mostly made this a non issue)

The trick here is to learn how to properly read the strike ladders. I was frustrated to no end until I finally learned how to do this. This article explains it Using The Nadex Strike Ladder For Trade Management

I’d suggest posting a screenshot of the strikes for the market you’re looking at tomorrow, tell us your observations/questions/issues with it and we can go from there.

#3

Hi, I had a similar problem with this and is one of the drawbacks of trading demo for too long. My demo stats looked great but when I moved to live trading my stats dropped and this knocked my confidence a lot.

I agree with race turtle regarding the strike ladders, and depending on the currency and time of day you’re trading, the ladders may not be presenting you with the strikes that will help you maximise your profits with your system.

Because of this I started to move away from Binaries and focus more on looking for the bigger moves over a longer time period trading Touch Brackets, along with the occasional Spread.

The price difference between demo and live becomes less important in this situation and to be honest I’m enjoying the experience more and learning to analyse and understand the charts a lot better than I used to,

However, with all that said, If you do as raceturtle suggests, and post screen shots you’ll probably find any advice you receive very helpful, as you will find understanding the strike ladder is just as important as reading the charts correctly.

Dave