Hi I was just wondering how Nadex determines the levels for their 5 minute binaries. It seems as if during peak volatility 9 am - 10 am ish the 5 minute binaries require an 8 pip move for max profit, where as any other time they only require a 4 pip move. I thought this was weird because previously I have traded the Crude Oil Inventory report event and the 5 minute binary did not adjust to the volatility, it only needed a 4 pip move for me to turn an $8 risk into $92 profit. Is there a method to Nadex’s adjustments?
Nadex 5 Minute Binaries During News
skeltonmark
#2
The pricing of 5 min binaries, yes, all depends on the volatility, and time of day. But also nadex has now changed the 5 min binaries to only 2 pips wide, and 5 strikes avail now, so they are much closer together, which has changed the pricing structure on the binary ladder. So you may need to relook at the strategies you have used in the past to re adjust. But basically when they open you should have an ATM strike, then two above and two below. so from the highest or lowest binary avail should only be 4 ticks to the current indicative at open