Forex Data Differences between Nadex and Tradestation

#1

I have noticed that the Nadex underlying Forex data is different than the data shown on Tradestation. I assume this is due to the difference between the bid/ask spread which is understandable but the thing that sticks out is the variance in the difference between the Tradestation number and the Nadex number. For example close to expiration at 7am this morning on the USDJPY the spread would vary between 0.015 and narrow sometimes to 0.007 within a minute. Does not sound like a lot but can be critical at expiration. What exchange data mirrors the underlying for Nadex?

#2

I meant to say what data feed(s) mirror Nadex forex and other nadex trading vehicles.

#3

As I understand it, the underlying price on the ticket itself is the “settlement” price. It’s being constantly updated. Also, NADEX uses a different data provider.

Settlement Values | Binary Pricing http://apexinvesting.net/nadex-binaries/

#4

Thanks Mark. I was hoping to find out which data provider Nadex uses.

#5

Reuters is their data feed provider. Which is considered the standard in data feeds (ie for bloomberg terminals etc…)

Nadex is a derivative not the underlying. No data mirrors nadex. Nadex is a derivative of other data. However, understand the nadex price is the settlement price. It is not the last price quote on a chart.

On Forex they are taking the last 25 mid prices. Dropping the top five and bottom five and averaging the middle 15 rounding out 1 additional decimal. The result is the settlement price you see on nadex charts.

On Futures they are taking the last 25 trades (regardless of size). Dropping the top five and bottom five and averaging the middle 15 rounding out 1 additional decimal. The result is the settlement price that you see on nadex charts.

In addition many charting systems quote either bid/ask/mid/or last. All these will affect you when comparing quotes.

If you want to know at expiration what is up close as possible then look at the settlement charts on nadex on 1 min or tick charts. Set the chart (cog on right side of nadex chart) to mid price).

Note Forex spot market itself will vary between tradestation, think or swim, gain, fxcm, oanda, alpari, reuters, iqfeed advanced fx feed etc… as spot forex is OTC not exchange. Though one can trade on an exchange like cme futures/nadex and again those prices will differ as well as they are derivatives.

#6

Thanks Darrell. I am trying to figure out if I can trade Nadex using Tradestation data and charts as the underlying. It looks like I will have to estimate the differences with time to use Tradestation data or look to reuters to provide the underlying. What forex data feed do you use?

#7

The only time nadex difference matters is in the last 5-10 minutes of expiration… beyond that a few ticks does not matter…

You can’t estimate the difference its a settlement - not another forex feed

I use the advanced forex feed on IQFeed

For reuters - you look at bloomberg or metastock i believe…

I don’t use Tradestation that much - i have it - but margins/commissoins/fees etc… Prefer NT7

#8

Thanks for the advice