By Darrell Martin
Curiosity in trading Bitcoin has not vanished. It is still intriguing however volatile the market remains. Nadex has the answer for the everyday retail trader. While Nadex has offered Bitcoin Spreads since mid-December 2017, a new monthly Mini Bitcoin Spread began listing June 1, 2018.
The Bitcoin spread has a one-week duration. Its tick value is $0.10 per point of the underlying index. The new Bitcoin Monthly Mini Spread is a month-long contract. Its tick value is $0.01 per point of the underlying Bitcoin index.
Both spreads allow you to trade the price of Bitcoin, which has the TeraBit Index for its underlying index, without having to own bitcoins. Because all contracts are settled in US dollars, there is no need for conversion or wallets.
Although many Bitcoin traders use a “buy and hold” strategy, it can be traded using short-term positions as well. When using Nadex Bitcoin Spreads, as the price of Bitcoin fluctuates up and down, it is easy to profit in either direction.
Whether selling or buying, Nadex spreads have built in upper and lower limits. This keeps the risk/reward within a defined range. One limit is the profit target; the other is the guaranteed protection against unlimited losses.
Both the Bitcoin Spread (weekly expiration) and the Bitcoin Monthly Mini Spread allow traders to exit prior to expiration. The Bitcoin Spread is designed for traders who want to day or swing trade short-term movements in price. Starting on the first of the month and ending on the last trading day of the month, the Mini-Bitcoin Spread is for traders who want to take longer positions with smaller capital required.
When trading on Nadex, traders trade the price of Bitcoin without buying and selling the bitcoins themselves. No need to worry about “Mining” or other risk exposure outside of comfort levels. Remember, traders have all the benefits of the Nadex exchange: capped risk, transparent price and CFTC (Commodity Futures Trading Commission) regulation.
To learn strategies to use while trading Bitcoin Spreads, visit ApexInvesting.com.