I have been testing a strategy to straddle the open of the US indices.I am finding that one side is out of range so that it shows a negative risk. With Nadex. Q.! Will the order fill from out of range? Q.2 Would it be best to place a working order at the floor/ceiling price that might not get filled at all if there is no shift in the trend?
If this has been addressed already please point me to it.
By straddle assuming you mean spreads?
Out of range? - assuming you mean outside the floor/ceiling of the spread
Negative risk ? maybe you mean inverted breakeven distance? All risk is negative risk
If there is a bid/offer quote and you submit it it will fill so long as you submit it at a price that is availble - try it on demo to see
Try everyone on demo to test it - (see home - start here to see how to get demo extended - step 2 i believe)
At the floor ceiling price? you mean if floor is 1400 trying to buy at 1400 - this would never get filled as ther would not even be a bid as no one would take a trade that cant even make a dollar - also there will be premium so that is factored in - though not sure this is what you are saying
If you enter at a lower price than the market on a buy - or at a higher price then the bid on a sell the order will be a working order till the spread price moves (time decays or underling market moves)
Thanks Darrell That does answer my question.
[quote=darrell]By straddle assuming you mean spreads?
Out of range? - assuming you mean outside the floor/ceiling of the spread
Negative risk ? maybe you mean inverted breakeven distance? All risk is negative risk
If there is a bid/offer quote and you submit it it will fill so long as you submit it at a price that is availble - try it on demo to see
Try everyone on demo to test it - (see home - start here to see how to get demo extended - step 2 i believe)
At the floor ceiling price? you mean if floor is 1400 trying to buy at 1400 - this would never get filled as ther would not even be a bid as no one would take a trade that cant even make a dollar - also there will be premium so that is factored in - though not sure this is what you are saying
If you enter at a lower price than the market on a buy - or at a higher price then the bid on a sell the order will be a working order till the spread price moves (time decays or underling market moves)[/quote]