How Does Nadex Calculate P/L?


#1

Hi; I am new at Nadex, so sorry if I ask a question that may have already been answered elsewhere or that makes me sound stupid.

How does Nadex calculate wins and losses? Today I traded the EUR/USD > 1.0593 (3pm) intraday. I sold at strike price 1.0594 for $45.20 with 3 contracts. At one point, the strike price moves below my acquisition to 1.0590. Yet according to Nadex, my net is still -96.10. I don’t quite understand this. Can anyone explain please.

Also Nadex does not show anywhere the strike price is sold/bought at (unless I don’t see it). How do I keep track of this other than having to write it down for every trade I take?

Thanks in advance

Lode


#2

In order for a profit to show, the strike must first overcome the bid/ask spread. As soon as you enter your order for a sell (for example), your PL shows up as an immediate loss because if you were to get out of that sell trade, you have to execute a buy order, so they look at the buy price which is higher than the sell price. In order for that trade to show a profit, the buy price has to go lower than the original sell price. When this happens, you will see a profit in your P/L section. Does this help?


#3

Thank you for the explanation. Yes, now I got it!