About the Nadex Spread Scanner Training, Documents and Q & A category

#1

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#2

I have been trying very hard to understand how to interpret the Proximity and Premium numbers posted on the New Apex Spreads Scanner. Please help!: Mr. Darrell, during his Options Greeks webinar kindly answered my question and if I understood correctly he said Proximity was the difference between the NADEX Indicative and the strike price on the buy side or on the sale side. I tried to practice what I was explained and doing the math, each time and every time, I was never able to come up with the same proximity numbers posted on the scanner and I am not talking small difference but a major difference do the point that it does not make sense at all. Please, on the APEX New Spread Scanner: 1- How proximity number is calculated and interpreted on the chart? 2- Meaning of the (+) or (-) in a front of a PROXIMITY number? 3- Meaning of the (+) or (-) in a front of PREMIUM number? 4- Are Proximity and Premium Numbers valued in ticks/dollars?

I am new and I apologize for my very basic questions.

Thank you all

#3

ON the SPREAD scanner I stated the proximity is the difference between the SPREAD price (bid and offer) (not strike price) and the INDICACTIVE index as provided by Nadex and displayed on the scanner.

In a nutshell its how far above or below the indicative price your buying or selling the spread.

It is stated in ticks based on how the underlying market ticks. The tick size of the underlying market is at the top of every spread scanner for each individual instrument. So if it says 4 and the market ticks in .4 its .4 away it it ticks in .25 and says 4 then its 1.0 away.

The premium is the time value in the spread. If your buying or selling a DITS spread the max profit is the premium.

If your buying or selling an OTS spread the max risk is the premium.

If your subying or selling a ITS the premium is the difference in the indicative price and the underlying market.

Premium is stated in dollars per 1 contract.

#4

Mr. Darrell I thank you very much for your quick and speedy response. I thank you for the detailed explanation. I figured out what was my mistake. I found the solution in one of your proximity training videos.

I learned that the proximity number posted on the Apex Spread Scanner is posted in pips/ticks equivalent of the instrument we are trading and not the arithmetic number resulting from the difference between the indicative and the price of the contract we are buying or selling. Regards, BCB

#5

Can anyone please explain what does mean “FADING A TRADE” Mr. Darrell in his video link:

in his Non Farm Payroll spread trade example he mentioned “You can fake the trade” Unfortunately a newbie here, please help. Thank you

#6

Fade means go against after the initial release and movement

Not sure what you mean fake the trade