What is Nadex Bitcoin?

Nadex Bitcoin was launched early December 2017 to be regulated by CFTC (Commodity Futures Trading Commission) the Bitcoin trading spreads is based on TeraBit Index that has a feature of floor and ceiling price range. The price of Nadex bitcoins will vary up and down, and the value of spreads will moves as well with a corresponding limits.

nadex bitcoin trading

Due to strong customer demand and retail traders are seeking latest ways on how trade bitcoin. With similarity to binary options contracts on Nadex, wherein the investor trading are based from what they think NADEX bitcoin contract is heading using the weekly or daily. A binary contract is the payoff of two possible results, it could be a fixed amount or a zero result means nothing at all.

Bitcoin digital currency is widely popular nowadays that seems to have and increasing demand and acceptance for the past years. Today, retail traders need to buy or sell actual bitcoins on a bitcoin exchange in order to have a view of its market.

Trading Bitcoin can expose you to unlimited risk

In every investment there is always risk associated in it. Trading bitcoin is a risk but the reward is fulfilling, as the saying:

“The higher the risk the bigger the reward or return”

At present more traders wants get hold and participate in the bitcoin phenomenon, bitcoin has soared its valued and gained its mainstream acceptance. However, protections from its volatility in the market are needed. Many ways are being introduced in trading bitcoins.

NADEX bitcoin contract spreads

For Nadex Bitcoin traders are allowed to have short-term positions on the price of Bitcoin, to limit their risk exposure. They have a unique way to trade bitcoins price without selling and buying within, and it it being regulated by CFTC.

When can NADEX bitcoin spreads be determined?

The value of the spread depends if you are a buyer or a seller. If the value of NADEX Bitcoin goes up it’s a gain for the seller, and if goes down it’s the high time for buyer to invest, the movement of the underlying prices is either goes above ceiling or bellow the floor.

In NADEX Bitcoin Trading, the risk is always limited because of this feature. It is always within the range that you define. You are protected and risk is limited and at the same time target is set. Traders are allowed to bargain price movements of the widely popular digital currency, it gives the traders unparallel access to market without the risk of holding actual bitcoins.

How much is the Bitcoin Spreads trading fees?

NADEX Bitcoin prices

Trading fees being paid per contract for is $2. You pay each side of the trade, to open the trade and the other one is to close:

  • Opposite trade can be place second before expiration.
  • Allow NADEX Bitcoin contract spread to expire.
  • A trading fee is charged per contract if you exit before the actual contract expires.
  • No settlement fees if you hold the bitcoin spreads until the contract expires
  • In most cases, charges per settlement of $2 per contract.

In short, fees for Bitcoin Spreads are assessed the same way as other Nadex Spreads, but the fee amount is $2 rather than $1.

Frequently Asked Questions

Can I monitor the NADEX Bitcoin prices during trading?

Yes, you can even view the charts live to track and analyze historic and current prices of the market, this will be displayed in the IPC or the Indicative Price column windows. But it will be available after 6:45 to 7:00 PM ET during exchange maintenance.

What is the duration of Spread contract?

Basically the duration of the NADEX Bitcoin contract is for the period of 1 week.

When can I start trading Bitcoin Spread contract?

You are allowed to trade from Monday 8 AM ET to Friday 3 PM ET, and trading is not allowed between 5 and 6 PM ET when the exchange closes for maintenance.

What is the total value of Spread on Nadex Bitcoin?

The total value of the spread on NADEX Bitcoin varies on the market conditions, its with, range between contracts floor and ceiling. But in placing a trade you’re always allowed to see and select the profit potential and its maximum risk.

How are the spreads being settled?

It is settled to last tick before the expiration of contract as provided by TeraBit Index.

Is Digital wallet need to trade NADEX Bitcoin?

No. Digital wallet is not necessary. You only need to open a regular Nadex account, to be funded in USD.

The member funds is secured and segregated to top tier US Banks. Settlement doesn’t involve physical bitcoin exchange. It is being settled using US dollars, you can withdraw the funds using your account (for  short period of time)

Source and References:

  1. https://www.forbes.com/sites/greatspeculations/2017/02/21/if-you-want-to-trade-bitcoins-first-learn-cftc-rules/#250581b72c85
  2. https://en.wikipedia.org/wiki/Nadex
  3. https://www.facebook.com/nadexUS/
  4. https://ph.linkedin.com/company/north-american-derivatives-exchange

 

 

What is Nadex Bitcoin?
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