Nadex

Categories: Trading

All or nothing. Yes or no. Black or white. If these are phrases that appeal to us, then we just might get a kick out of binary options trading. Basically, with binary options, we make a prediction—the share price of Stuff 'N' Things, Inc. will be above $52 at 12:00 noon on June 24th, for example—and if our prediction comes true, we make a flat-fee profit (minus what we paid for the option). If we’re wrong, we lose it all. Yes or no. Black or white.

So where can one get in on all this binary option fun? Well, in the U.S., we can mosey on over to Nadex, which stands for North American Derivatives Exchange. Nadex is one of very few regulated binary options exchanges in the U.S., and every option either makes us $100 (less the cost of the option) or $0. Another advantage Nadex has over other binary option exchanges (aside from actually being regulated and holding our money in U.S. banks rather than offshore) is that we have the option of exiting prior to our options’ expiration.



Find other enlightening terms in Shmoop Finance Genius Bar(f)