Nadex Daily Forex Spreads at Near Expiration

[MGBLOOMFIELD]

Today, I was using the Apex Spread Scanner to watch all of the 10 Nadex Daily Forex Spreads.

30 minutes before daily expiration at 3:00 PM EST, I noticed that ALL of the Daily Forex Spreads were ITS/NTM (in the spread and near the market).

Doing the math, if I bought one contract for each Daily Forex Spreads at 2:30 PM EST, and waited until all of the Daily Forex Spreads expired “in the spread” at 3:00 PM EST, I would’ve earned ~$300 per Daily Forex Spread for a total of ~$3,000 (before fees), assuming that I provided collateral for each Daily Forex Spread.

Am I right?

Michael

[jtpyfrom]

False. Spreads are based on the underlying market and move as the underlying market moves. Depending on where the underlying market price is, that is where the spread will be (not taking premium into account). You are thinking in terms of binary options and spreads work extremely different from binary options. You get payout on spreads based off where you bought/sold and where the ceiling/floor is. If the spread does not move, you don’t make money. If the spread moves 5 ticks/pips, then you make $5 per spread minus the bid/ask spread of that particular instrument. Darrell has a webinar on the basics of spreads which explain exactly how they work. When I get to my computer I’ll post the link to it. Hope this helps! -Jamell

[MGBLOOMFIELD]

Thank you for the clarification, Jamell.

[jtpyfrom]

No problem. Here is the webinar I was referring to earlier. Enjoy

Nadex Spreads Made Easy

By Darrell Martin This webinar walks you through what a Nadex Spread is and how it works. It also compares it to futures, forex, options, stocks/ETF's, and options regarding leverage risk and profit potential. Nadex spreads are completely different than Nadex binary options. Learn more and get access to the free Nadex spread scanner at Apex Investing Institute http://apexinvesting.com in the free members area.