By Darrell Martin
Retail traders using Nadex continue to reap the benefits from record growth of the first and largest Commodity Futures Trading Commission (CFTC) regulated online exchange in the U.S. December 2016, had the highest monthly trading volume in the history of Nadex. This reflects a sustained demand for limited risk alternatives to conventional trading.
Nadex also reported over 70 percent year-over-year growth in trade volume and total trades of binary options when comparing the fourth quarter of 2016 to the fourth quarter of 2015. Annual trades and volume from 2015 to 2016 at Nadex, had an overall increase of 50 percent.
Nadex CEO Timothy McDermott said, “December and the whole fourth quarter showed the unique strengths of exchange-traded binary options. Whatever market conditions our members encountered, they could take advantage of those opportunities with confidence.”
Retail traders experience several advantages when trading Nadex binary options. These include having capped risk and short-term trading on a wide variety of markets. Binary options are fully paid for upfront, thus having no need for a margin call. Even if the market moves against you, losses are limited and your option is still active in case the market turns back in your direction.
Nadex also offers spread trading allowing you to trade the movement between two levels. There are advantages to trading spreads with Nadex. You can ride out the drawdowns, while you wait for the market to move in your favor. You’re not exposed to unlimited risk, and you don’t have to worry about being stopped out. Your maximum possible risk is known up front when you place the trade.
With both Nadex binary options and spreads, you are not locked into the trade. You can exit at any time to protect your profits or cut your losses.
It is advantages like these that have helped the retail trader find an alternative avenue for trading. This is what continues to make Nadex grow year after year.
To learn how to trade Nadex binaries and spreads, visit apex investing.com.