CHICAGO, IL / ACCESSWIRE / January 2, 2019 / Nadex, the US-based exchange which introduced the trading world to regulated, on-exchange binary options and call spreads, continues to blaze the trail of innovation by launching a revolutionary new financial contract, Touch Brackets™.
Initially listed on eight markets including the four major US stock index futures and four major currency pairs, a Nadex Touch Bracket allows a trader to take a position based on price action within a predefined price range. The range of each bracket is capped on either end by the floor and ceiling. If the indicative index 'touches' a floor or ceiling, the contract expires immediately, and the trader's position is settled at the price level of that floor or ceiling. If over the life of the contract, which has a maximum duration of one week, neither the floor or ceiling are touched, the level of the Nadex indicative index at the stated expiration time determines the profit or loss on the contract at settlement.
'Two common mistakes traders make, particularly new traders, are not having an exit plan on every trade for when to take profit or limit loss and, if they have a plan, not following it. Because of the knockout characteristic of both the floor and ceiling, the maximum risk and potential reward are known when the trade is placed and the trade will be automatically closed out if one of those levels is hit. So, these contracts effectively offer traders not just a plan to take profit or limit loss,' said Nadex CEO, Timothy McDermott, 'but also the discipline to follow that plan.'
With tick values equal to a micro futures contract or mini forex contract, individuals now have a way to access the excitement of the markets with lower capital requirements and pinpoint risk control. Additionally, the collateral requirements, which equal the maximum risk on a trade, don't change over time. It doesn't matter whether a position is held for 4 hours or 4 days, a trader won't be asked to post additional collateral beyond the initial cost of the trade, making these contracts as efficient to swing trade as to day trade.
There will be four Touch Brackets listed at the beginning of each week in a stair-step type fashion giving both bullish and bearish traders ample opportunities with tight risk controls. Additionally, if a Touch Bracket is knocked out and expired, a new bracket will be created at a new level in the direction of the market move that triggered the knockout, providing the trader with additional market opportunities. Of course, as with all Nadex contracts, a trader may choose to close out early to lock in profits or limit losses.
About Nadex (North American Derivatives Exchange ™)
Nadex is the first and largest CFTC-regulated online exchange in the U.S. offering binary options, Touch Brackets and call spreads to individual traders seeking a trusted and secure way to participate in the markets. Member funds are segregated and held in top-tier US banks. Using Nadex's online and mobile platforms, traders can trade short-term price movements in the most heavily traded currency, commodity, stock index, and cryptocurrency markets, as well as economic events, with intraday, daily and weekly contracts. To learn more about Nadex, please visit https://nadex.com. For information on becoming a Nadex member, call 1-866-296-0167 or email customerservice@nadex.com
Media Contact
Name: Dan Cook
Title: Director, Business Development
Email: dan.cook@nadex.com
Phone: 312.884.0923
Disclaimer: Trading on Nadex involves risk and may not be appropriate for all investors.
SOURCE: Nadex
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https://www.accesswire.com/531665/Nadex-Introduces-New-Touch-BracketsTM-Contract
