Can I choose the middle spread

#1

Good Evening,

Was trading last night and something made a light bulb go off in my head and wanted to see if my thinking is correct in regards to selecting a spread.

Often time there will be almost a 20 pip difference in relation to the underlying and the spread buy/sell price if you select the upper or lower spread, but I noticed that the middle spread was tracking within 2 pips of the underlying, so is it better to take the middle spread? I understand you take on more downside potential/risk but if your watching the trade you could sell at anytime.

I believe the Binary Spread Cross strategy will take care of that major difference if you select one of the upper or lower spreads if I:mad: have this correct?!? but buying the middle spread is another option? Is this right?

Best, -Rich

#2

Yes that is correct. This is how i trade nadex spreads trading the apex elite method. It is important to select the right spread for the right strategy - ie a straddle you want the one close to floor/ceiling. Trend trading you want one close to underlying. This is what is defined as breakeven distance on the spread scanner.