Nadex pricing inconsistent between DEMO & LIVE!


#1

Just after the open at 9:30, I was on my DEMO account. I noticed the pricing wasn’t right. The OTM contracts were higher than $50. I suddenly got the idea to take advantage of it on my LIVE account. Imagine my surprise when I noticed the prices were DIFFERENT when I switched to LIVE!!!

I made a screen capture to prove it. Look at the difference. You can see the time on both of them. They are about a minute apart. I was going to do this on the 10am expiry, thinking it was easy money. :smiley:

NOW I’M GETTING REALLY SUSPICIOUS ABOUT NADEX! What reason could they possibly have to make the prices so much different in demo??? Here’s my theory: Get our hopes up - at least the amateurs. I guess they didn’t expect someone with both a demo and live account to compare them. HERE’S MY VISUAL PROOF!!! You can’t dispute this!


Nadex pricing more expensive in live than demo account
#2

I also noticed massive difference in premium too, but only on demo so couldn’t compare to live. It would be interesting to figure out what the reason is.


#3

I thought I’d check another of the indices fo ran asymmetric premium. (See US500 below) This does seem to be out of balance compared to what I would expect. I am presuming on live it isn’t the same as per what Billgraper is seeing.

I am making the assumption that it is a bad data issue, as long as I know that something as extreme as these quotes will flag as being extraordinary we can live with it when going live.


#4

Here is the latest capture of the NQ on Demo. Definitely data feed issues on Demo accounts, It can’t be anything else, one extreme to the other. Bill check the live quotes if u get this reply soon to see.

I can live with that as long as the live account feed is maintained true.

Rich


#5

I’ve sent the screen shots to Nadex for their feedback on the prices to clarify the issue.


#6

I should’ve done the same. I guess I can still send my screen cap above. If it’s just one of their feed problems, okay. I recently couldn’t get the ‘indicative’ price to show on US Tech 100 on my computer OR my phone. Things like that happen. If there’s some other reason the demo & live prices are different, I’d say they should change that. The demo prices shouldn’t be affected at all by the public. It should always be the same as the live prices, so we have a true sense of what we’re doing & how well our strategies are working in demo.


#7

I don’t see an issue here. The indicative price is different and because there is only 20 minutes left to go in the contract a few ticks difference can more dramatically affect the price of the binary contract.

The first pic it is at 4793.367 which is above the 4793 strike far enough for there not to be any offers available.

In the the second pic the indicative has come down to 4792.85 which is now below the 4793 strike hence there are now offers available.

This indicative price movement over that minute difference between the two screenshots lines up with price movement on a chart of NQ.

And if you are talking about the bid price on the 4805 contract, this difference in the indicative is still the reason for the difference in price.

PS - If you were trying to highlight an OTM contract here (the 4805 with a bid of 65.50) that is not an OTM contract, it’s ITM.


#8

Hi Travis, What are your thoughts on the spreads and their quotes and the extremes. e.g. the indicative being at 4799.0 and the 4800-4840 being at +121,with the 4760-4800 being at +14.Then on the last screenshot ,4800-4840 being 0 with the 4760-4800 being +22, indicative being 4804.6. ?

I haven’'t received a reply from Nadex as of yet Bill but I’ll post when I do.

As it is I have just the 4800-4840, -1, open at present as long as it keeps around here (4804) should be a good “Demo” trade. Rich


#9

Travis, look at my image again. In the demo (top) image, the 4805 strike is pretty far OUT of the money on the buy side. There’s no way that the “buy” would be priced at $71.25 if it was out of the money. I highlighted the sell 4805 for $65.00 because I would take that all day any day! That one is pretty far IN the money, yet you would only pay $35 to make $65.

As far as the movement from the demo image to the live image, it only moved approx. ½ point. Not even the 5 minute binaries move that fast in price. The 4805 strike would never go from $71.25 to $9.50 on just a half point move. The demo prices were off by quite a bit. I wish I could sell an ITM strike for $65. :wink:

A more accurate price for the 4805 strike in my DEMO image would be SELL $6 ; BUY $12.


#10

Hi Bill,Travis,

Here is the answer to my question to Nadex.

I think it pretty much explains the price difference on my spreads and I would expect it to possibly be an answer to your binary prices.

As long as we know this degree of mispricing happens on Demo but not on Live I can live with it, but, I would expect Live to be 100pct accurate when we are using hard earned/traded cash. Rich


#11

I have a similar answer from Nadex. :slight_smile: Yeah you’re right. As long as their live platform is always working correctly, we should be okay.


Thank you for contacting Nadex.

Our IT department is aware of pricing differences earlier in the day on the demo platform.

This issue should be resolved upon the reopen tonight at 6:00pm ET.

Best regards,

The Nadex Team


#12

Sometimes when the Binary Ladder Chart is displayed, all of the Buy and Sell prices disappear in the Red and Blue boxes on the right side of the chart. It comes back after a few minutes, after I reload the chart or restart the program a couple of times. I wonder, is this a Nadex problem or a an issue with my computer?


#13

Guess what it’s 2/15/19 and this issue is still happening. I’ve taken many screen shots of Nadex demo and live side by side at the same time and it has nothing to do with a “data feed” issue. That’s preposterous. The data is being downloaded directly from the website, it’s not being loaded from a ninja trader data feed or any other broker. It’s directly from them and the demo on binaries and spreads is vastly different. I spent 3 months taking every other week off trading all through the week in Nadex demo account and I was having success with many trade setups and the risk and reward that a binary or spread would give me. I started out with a theoretical account size of 2600 and traded with only 5% of the capital then lowered it to 4% and 3.5%. I made over 3100 on demo so more than doubled my theoretical starting point in less than a month. I was very pleased and this was the best I’ve ever done in trading in over 6 years. I started live and traded for 2 days. The very first day I noticed that I couldn’t get as many trades with the risk and reward I was getting before on demo. Then I started comparing demo and live and sure enough the prices are vastly different, so to my chagrin I realized that the last 3 months I spent on demo was a waste. There isn’t a way I could have replicated the same results live because the risk and reward isn’t there. It’s shameful and it’s decietful. There is no reason why they shouldnt post the exact same prices on demo as were on live. Any other explanation is not understanding what harm this is actually doing. How can you trade live if you don’t have confidence? Confidence you gain on a demo account. How can you have confidence if as soon as you go live after building confidence you realize that the playing field is instantly harder? The prices of in the money contracts is lower so you can’t make as much if you sell them. The price of out of the money contracts is higher so you don’t make as much when you buy them and they turn in the money to sell again. I’m outraged. This is completely decietful and dishonest.


#14

Dan demo and live are different. They are options. The largest impact on option pricing is implied volatility. The implied volatility from demo is from a static IV demo isn’t being priced by market makers. Live is priced by market makers and other traders. It’s a live IV by numerous sources. Prices are impacted by other market makers placing orders competing for bids and offers and other traders and their own pricing model based on what they have set the IV in their pricing model. This is disclosed up front on every broker exchanges website that demo and live will vary. In options even more so again due to static IV versus dynamic live multiple feed IVs. Understand when IV is lower in the markets them demo is harder than live. When live IV is higher demo is harder. Using demo is first and foremost about discipline. From there yes you will want to go to live. One way to do this and use live pricing without risk is the old fashioned way is to write down the live price of entry and exit and calculate results or in excel. Yes not ideally just giving you some tips and helping you understand why the prices differ. Personally would like it of they would feed the marker makers feed versus the static IV. Put in your request to [email protected] to share your desire and frustration and see what they respond with.


#15

I notice rational explanations have been given over the years as to why Nadex Demo is different than Nadex Live.

The bottom line is Nadex Demo is NOT the same as Nadex Live, and it’s DECEITFUL.

When I was first training with Demo, over a period of time, I brought my account up from the initial $25,000 to $130,000. Amazing! Spectacular! I was getting automated notes from Nadex saying how incredible I was, and it was time for me to get a Live account. I’d figured I learned how to do this!

Well, not even close.

I could not accomplish anything near in Live what I did in Demo. As a matter of fact, I lost quite a bit of money. To add insult to injury, when your account gets below a certain level, Nadex throws it in your face to add money to your account every time you log in. It’s as if Nadex wants you to get overconfident in Demo, knowing that when you go Live, you’ll blow your account, and you’ll keep adding money like you’re a gambling addict.

Over the years, many of us have contacted Nadex about the differences between Live and Demo, but nothing has been done. If Darrell can’t convince them to make the Live and Demo feed the same, it’s less likely to happen. Of course, all of us should still continue to send in our requests to Nadex to fix this issue. Like most companies, they’ll only make positive changes when they start losing customers and/or getting real competition from other competitors. Until then, we have to deal with it.

Since Nadex will not use the Live feed for Demo, we have to find other ways to adjust. Manually writing down Live strike prices and watching the trade results are pretty much the only real ways to train yourself. This is what I’ve been doing since I’ve reduced using Demo.

Don’t get me wrong. Demo does have some benefits. It’s good for discipline and practicing your strategies. Sometimes, the prices are even the same, depending on the level of volatility.

Bottom line, we have to make the best of what’s available. (Either that or just don’t trade Nadex.)