By Darrell Martin
The Nadex exchange has just recently added additional binary expirations for the underlying international Indice Nikkei 225. This is great news for evening traders! Also, if you have a day-time job and are looking for a low-risk way to trade in the evening, this may be a solution for you.
Most markets are known for being pretty flat in the evening, but the Nikkei isn’t like other markets. It has great volatility and great trends and reversals. On average, the Nikkei moves approximately 100 ticks per hour!
This would be very intimidating to trade the futures markets due to risk of margin calls on big fast moves, but with Nadex spread and binary contracts, all contracts have capped risk.
Related: Using Nadex Spreads To Help You Trade The Australian Dollar CPI News
Here is a chart of the Nikkei 225 over the past week. To ensure you are looking at the correct chart when making trading decisions, it is important you look at the Nikkei 225 at the Singapore exchange (SGX) and not the CME Nikkei 225 listed futures.
As you can see above, the Nikkei 225 is known for having large moves and provides a great opportunity for night-time traders to trade with capped risk.
Previously on Nikkei 225, Nadex Japan 225 binaries only had 1 expiration time per day and 1 weekly expiration, but now they have added five additional expiration times in the evening. This makes it even easier to find a binary contract that is right for your trade.
The additional intraday binary contracts added by Nadex have the following expirations: Intraday: 7-9 P.M., 8-10 P.M., 9-11 P.M., 10 P.M.-12 A.M., and 11 P.M.-1 A.M, all US Eastern Time. The Japan 225 binary contracts are a derivative of the Nikkei 225 on the SGX exchange.
Who is Nadex?
The North American Derivatives Exchange is based out of Chicago and is regulated by the U.S. Futures Trading Commission (CFTC). Nadex allows traders to trade binaries and spreads on foreign exchange (forex) markets, U.S. and International Stock Indices, and Commodities like gold and oil. Trades can be opened and closed before expiration and NADEX is not trading against you.
How Can Nadex Binary Contracts Be Used?
These contracts can be used to trade strangles on JPY news, directionally, range bound and premium Collection.
For example, you could buy a strike under the price. If the market moves up stays flat or even down some, you can profit.
You could buy a strike above the price risking $5.00 to make $95. Or risking $500 to make $9500.
Learn More About Nadex Binaries
On Nadex the markets are open from as early as 6 P.M. ET to as late as 5 P.M. the next day, giving the ability to trade day and/or night on intraday, daily and weekly contracts.
If you would like to learn more about trading Nadex binaries, check out this 16 video course, absolutely for free, on Marketfy.
See article on Benzinga