I’ve watched the entire Nadex Spreads 101 course, and I’m now into the scanner training. However, I still feel so lost in my basic understanding of spreads.
OK…with regular BO’s you are saying “true” or “false” to the statement. Simple to wrap my brain around.
But with spreads, I don’t understand the basics of the theory behind it. Say price is at 12.04567 and the spread is 12.0000 - 13000 and I buy it. Am I basically saying I believe the price will go up? And what if I sold this same spread, do I make money if it drops below 12.04567?
Or would I be better off to “BUY” a spread that is already below the indicative price? Assuming I think market is dropping. OR would I SELL a spread that is already below the indicative price?
This is what I’m not wrapping my brain around. What to do based on where I think the market is going. I get that you make money once it hits the bid/offer price you paid and surpasses it. I get that part. I just DON"T get what to look for when I think market is going in a certain direction.
Help please…I’m floating around in a lonely universe with Alien spreads!!! aggghhhh!