Nadex Spreads ..... Equivalent number of contracts on the FTSE,DAX,NKD


#1

Good Afternoon,

I was going through all of the different markets that are available to trade through Nadex , and was looking these over in the Spread Scanner

My question please is … on the following markets ( FTSE,DAX,NKD ) It says that to Mimic the underlying market, you need to use an ATM spread

Can someone please give an example of what this would look like, in a real world scenario ?

And also, is the China 50 only available to trade the Binaries on ? No Spreads can be traded on it correct ?

Thanks for the help Really appreciate it - Michael


#2

Hi MD, if you have not already watched it, go to the Forum under the spread webinars section and watch the video the Ins and Outs of nadex Spreads series. it does a great job explaining spreads and how the ATM spreads work. Here is the link: Webinar- The In's and Out's of Nadex Spreads

There are multiple spreads you can choose from. Some are at the floor or ceiling, some are priced further away from the current underlying price, some have postive premium, some have negative etc. To most closely mirror the underlying market and there fore move with the market as close to tick per tick / tick per $1, it is best to use the ATm spread, meaning the one where the currently underlying is towards the middle of the spread, not at floor or ceiling. Most of the times your best bet is the wider end of day ATM spread. Hope that helps