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Nadex's Dan Cook (Director of Business Development) - Ask Me Anything (AMA)

  #13 (permalink)

Trading Experience: Advanced
Platform: Nadex
Favorite Futures: Binary Options
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Posts: 7 since Apr 2019
Thanks: 3 given, 16 received

clockwork71 View Post
My question is will we ever see tighter spreads? I can drive a truck through them at the moment.

Hi Clockwork71,

Thanks for your question and comment - it is appreciated. The bid/offer spreads are dependent on several factors such as market volatility, contract type, and underlying market. Are there specific markets you are reviewing? If so, please let me know and I will be happy to take a look. Over the years, the spreads have become much tighter as we have added more liquidity providers and exchange volume has grown. When I started here around 9 years ago, it was common to see binary option contract spreads in the 9 to 12 range. In many markets on Nadex binary option contracts are now 2-3 wide. Below is a screen shot of the US 500 which is based on the CMEís E-mini S&P (ES) contract. This screenshot was taken in our live markets this morning. The binary options are trading 2Ė3 wide. Also, if you havenít taken a look at our Touch Bracket contracts, which are scaled in size to a micro futures contract, the Touch Bracket listed on the ES is trading at 0.2 wide. That is actually tighter than the minimum tick on the ES which is 0.25.

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Dan Cook
Nadex Director of Business Development

DISCLAIMER: Trading on Nadex involves financial risk and may not be appropriate for all investors.
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