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Hello, I am new to trading nadex spreads I know they trade using the indicative index and not dollar amounts. But is their a way to know how much the indicative index number is in dollars. For example if I want to set my worst price field to $15 dollars but would have to use the indicative integer to do this. Thanks.
With spreads, the indicative is basically the dollar amount. If your Forex pair is formatted like the USD/JPY, you can see very clearly that the indicative is basically equal to the dollar amount if you ignore the decimal point. So, if you bought a USD/JPY spread at 112.97 with a floor of 112.80, your risk is $17 (112.97-112.80=0.17=$17). So, if you wanted to be sure you were out of the trade when you hit $15, you’d set your Stop Trigger to 112.97-0.15=112.82. Other Forex pairs can be a little less intuitive, but they’re all basically the same in principal. For example, take the EUR/USD pair. Let’s say you bought a EUR/USD spread at 1.0976, with a floor of 1.0760. Your risk is $216 (1.0976-1.0760=0.0216=$216). So, if you wanted to be sure you got out at $15, you’d set your Stop Trigger at 1.0775. Keep in mind though, that while you’d still have $15, you would’ve lost $201! If you mean you only wanted to risk $15, then you’d set your stop at 1.0976-0.0015=1.0961.
In a nutshell, no matter where the decimal point is, 1 tick = 1 dollar. From there you can calculate your positions accordingly.
Thanks Dirthheadrock Im starting to get it.
