dabeach,
We have done plenty of size… but the question you have is about size for liquidity for yourself— will it be there for your trades…
So i think the first thing is ensuring you understand a binary is not the same at all as a forex lot… a binary is a price that is reflective of the delta of a call option with the same strike and same expiration (ie delta 0 to 100, atm delta is 50 etc… they line up binary price and delta of a call)
I may be presumptive but i think you are confusing forex lots - and how you trade them on leverage etc… with nadex binaries…
You say 1 million lots - but then say give up 5 or $10 - that would be $5 million or $10 million dollars on 1 million binary contracts in “give up”
Reference is in contracts not lots. They are not the same.
Unless you’re willing to hold that binary to expiration don’t out trade the bid/ask size of the consistent depth 1,2,3 levels on that specific contract.
Yes you can get out but there can be a few seconds to a few minutes delay before the full size is refilled.
Regarding binaries - there needs to be a bid/offer to get a decent size (ie if the bid is so high up that the offer is above $100 then the size will be small (i covered this on last nights bonus nadex webinar). So naturally as price gets closer to 0 50/100 closer to expiration will it will end in 0/100 this will lower the size on more and more strikes ie minutes till etc… just watch the markets you will see. the ATM like any options market will always have the most liquidity. Daily more than intraday, weekly more than daily. All this is 100% visible on the platform just browse around.
Nadex does not provide liquidity they are an exchange they are not on the other side of the trade. They exist like any other exchange to ensure transparency in pricing and liquidity while ensuring anonymity of traders.
Liquidity is provided by market makers and other traders. At any given time like on any market you can buy or sell whatever is quoted at that second (it is not a RFQ) they provide the size live in front of you there is no guessing as to what size you can get filled that second. You can do more than that but you have to wait as stated above for the liquidity to be added back in seconds to minutes.
Like all future options on actual commodities there is a limit though its very high unless your a hedge fund or something -These range from 2500 to 135000 depending on market and contract.
Forex however has no position limit. See contract specs for limits etc on indices commodities.
You do understand a binary is not like a forex instrument. 1,000,000 contracts would be between 1,000,000.00 and 100,000,000,00 in risk in a single trade, not leveraged size but actual real risk within the hour. Maybe you have 10’s of millions but unless you do no need to worry about 1,000,000 contract position limits.
All markets have to have a buyer to have a seller and vice versa. No one is obligated to take anyone’s trade anywhere in the world except for the trades in which they place in limit being collateralized.
Again Nadex will not fill you, as Nadex does not fill you, they facilitate the transaction between the buyer and seller.
That’s like saying will nasdaq fill me on aapl, nyse fill me on aa, cme fill me on gold - they are not the filler they are the facilitator of the transaction.
Bottom line:
I hear the question all the time about size…yet the size is quoted live right there in the platform so yo know what it is… until your account is so big that 28 markets on 29 different possible expiration varying by market with 3 to 21 strikes per expiration don’t worry about it. That’s a good problem to have. When you get there let me know, we will cross the bridge together.
Note for a more 1:1 comparison - check out the spreads - learn more under education - nadex spreads - above
This will give you a more accurate comparison -1 nadex spread is basically equal on a pip for pip move to 10,000 units (a mini lot) of currency…
