I am hoping that Darrell or one of the other elite Nadex traders can answer a question for me. I remember watching a video or two awhile back where Darrell stated that he knows of Nadex traders that are trading 200+ contracts per expiry. Based on this, I have setup my money management system to reflect this possibility after x number of trades. However, I recently took a look at the Nadex website under instrument specifications and it says that the number of contracts available for example EUR/USD 2 hour are 19 and daily are 21. I contacted Nadex because I was confused about this and the guy said that that is the most contracts you can buy per expiry. Is he correct or did he possibly misunderstand me? Can you buy more than 19 contracts on a 2 hour expiry?
I believe their was a misunderstanding… Nadex has posted limitations on trades. If a trader comes in and “Takes Out The Book” meaning takes all the trades on one side of a contract, the Market Makers will re-fill with new available contracts That is unless you are entering into a “Black out Period” just prior to expiration. It may take them a few seconds to accomplish, but the Makers Makers will replenish with more contracts. Just because it may show 15 contracts does not mean that that is all that is available. For every Buy or See\ll you have to have a Sell or Buy to go along with it.
What that means are the number of Expiration Levels or statements offered for those expiration durations.
Go to the Contract Specs and also observe these strike levels on the platform
Example: When the EURUSD 5 min Expiry opens for trading, you will see 5 strikes, the Middle ATM, 2 Up and 2 Down
For the Intraday 2 - Hour: there are 19 Strike Levels open for trading starting 2-hours prior to expiry time. 9 Up, 9 Down and the Middle At/Near ATM
Would like to bump this topic back up, I am also wondering the same thing. I have been using nadex in demo for awhile to test a hedging strategy in conjunction with my other trading vehicles and certainly believe it has its place. However, if the max contracts i can hold in say a 20 minute index binary option is 125, i may soon out grow it. If one setup a business/institutional account with Nadex, would you possibly gain access to a higher amount of contracts being offered at a given strike price? FWIW, i have an email out to Nadex to see what their response is. I will post my findings here.
