Nadex binary settlement of half pip above strike

General Trading Forum
1

Hello,

Nadex settlement is not clear to me.

Let’s say I go short at strike >1.1200 Now the asset expires 0.75 pip above the strike at 1.120075

Is this a losing trade or will Nadex round down to a full pip and close at the money?

Thanks

2

There’s no rounding down. You’re either above/below/at. I’ve won/lost trades by being a single tick above/below. Nothing worse than being in the dark zone and seeing price dance a tick or two around your strike price.

3

Thank you for answering but it is not clear to me. You mention a one pip move while I am talking about a move of less than a pip. Let me show you an example:

So lets for example say that I went short on this strike and it expires at 1.40294

What confuses me is that the strike has 4 decimal but the quotation has 5

so:

strike: 1.4029 exp.: 1.40294

You see the difference?

So how does this position end? ATM or OTM?

4

I didn’t say pip. I said tick. 1.40294 is higher than 1.40290. If you’re long, that would be ITM. Short would be OTM. I’ve won/lost before on a single tick.

5

I stand corrected. Now it makes sense to me, thank you