Hello Darrell,
I was trading in Nadex binaries today (EUR/USD based on the 2pm FOMC rate announcement) and for a period of about 10-15 minutes, 15 minutes after the news came out, there was absolutely no liquidity in the Nadex Market. No buy or sell orders - even at the underlying market level. I was in with 2 positions and could not even get out for a loss if I wanted to. Is this something you have seen before? This was on a live account on which I have been trading for some time now and have never seen such a thing.
Thanks,
Bryan
It was not related to fomc etc… There was a system error that started in the morning they where fixing it on the fly and some more issues came up a few times throughout the day. There was intermittent liquidity and that by other traders. This is very rare. Every exchange has issues just google nasdaq outages etc…
As you stated they had most everthing resolved within about 15 to 20 minutes after it started around 2:20 The nice thing is on nadex unlike cme nascar etc your risk is capped so if something does happen on your data feed Internet power pc exchange market makers etc etc you have capped risk. It’s extremely annoying but fortunately it’s rare. I also confirmed there will be 1 to 2 additional market makers soon (ie within next couple months) that will help having multiple market makers as well.
Multiple connections and liquidity providers.
I had live trades on also that I put on live today on my radio show … for 3pm expiratiom ahead of the fed…main one was a spread iron condor on nadex on gbpusd that worked out well. Though usually if your trading into fomc exiting with stops etc regardless is usually useless due to volatility. Iron condor was neutral due to excessive iv …
Also though this was not the case it’s important to understand on any exchange in the world a market maker has the right to pull quotes during extreme fast markets and on news usually as much as 15 min after the news/event Again this had nothing to do with the system issue but it’s good to be aware. I trade nadex daily and trade the news all throughout the week on nadex and have very rarely had issues. Its rare enough that i dont worry about it happening… if that helps…
Welcome to trading anything is possible… All the more reason I like capped risk products in today’s day and age of technology…
