Nadex Adds Two New Market Makers To Its Growing Exchange: Liquidity Brings More Liquidity
It isn't just traders that are hopping on the Nadex exchange to trade Nadex spreads and Nadex binary options. Market Makers are also coming on board seeing the massive opportunities that exists. Traders have been increasingly growing in not only number of participants, but number of trades as well. And where there are traders there are Market Makers. Market Makers result in more liquidity for more and larger traders, as well as bid/ask spreads, which bring in more Market Makers and the cycle continues.
In 2013, Nadex grew over 100 percent year over year. It has grown even faster in 2014, growing by 49.8 percent in the first quarter.
Starting the quarter, Nadex added in EUR/USD and USD/JPY nighttime binary expiration and around the clock binary option expirations to these two popular forex pairs. Nadex continued adding contracts by ending the quarter adding in five daily expirations to all FX pairs.
It also added nighttime expirations to both the GBP/USD and the AUD/USD, with additional forex pairs and the Nikkei 225 (Japan 225) intraday night time binary option expiration contracts. The demand continued to grow. In the 2nd quarter, Nadex continued their expansion by adding in EUR/JPY to their around the clock binary option contracts.
Traders have been quickly hopping on board to trade on the Nadex exchange in order to allow themselves to trade both the Nadex binary options and the Nadex bull spreads. Nadex's continuing addition of markets and expirations allows traders day and night to be able to trade popular US and foreign indices, popular commodities, and foreign exchanges.
The traders enjoy the benefit of massive leverage, but without the massive and uncapped risk. Traders range from traders with $100 in their account to six or seven figures. Nadex has built a model that allows for easy, direct entry for a new or veteran trader to trade on the exchange. It is the only regulated binary option exchange in the United States that focuses on the retail trader in forex, commodities, and indices.
Group One Futures Trading, LLC joined Nadex as a Market Maker publicly as of April 21, 2014. Group One and its affiliates form one of the largest privately held options trading firms in the United States. In a recent press release, the CEO of Group One and CEO Designate of Nadex commented on the addition of another Market Maker to Nadex. Group One will focus primarily on the Indices and Commodities contracts.
“Nadex is a well-respected exchange and we are excited to have the opportunity to make markets there,” said John Kinahan, interim CEO at Group One. “Group One provides competitive liquidity across a broad range of markets and Nadex offers us the opportunity to bring our skills to a retail-focused market with novel, interesting products.”
“Group One is an expert in its field and will help provide additional liquidity in our most heavily traded markets” said Tim McDermott, CEO designate at Nadex. “As part of our overall strategic goals, we’ve been seeking to partner with highly qualified Market Makers to provide even greater liquidity and tighter spreads; this development should make Nadex an even more attractive trading platform for current and prospective members of the exchange.”
Doyen, LLC joined Nadex publicly as a Market Maker on April 28th, 2014. Doyen will make markets on some of the most heavily traded Forex pairs including AUD/USD, GBP/USD, EUR/JPY, EUR/USD and USD/JPY, for intraday, daily and weekly contracts, with additional contracts to be added over a period of time. With an additional Market Maker, Nadex expects tighter spreads and increased liquidity on this popular asset class.
In a recent press release, the CEO of Doyan LLC and CEO Designate of Nadex commented on the addition of another Market Maker to Nadex.
“Joining Nadex as a Market Maker provides us with the ideal opportunity to leverage the benefits provided through the contracts available on the exchange,” said Viktor Prokopenya, CEO, EXP (capital) Limited. “We are very active in the FX market, as well as in other markets and believe that the additional liquidity and tighter spreads provided to traders on Nadex, as a result of Doyen as a Market Maker, can make this segment even more attractive to members.”
“We look forward to working with Doyen as a Market Maker,” added Tim McDermott, CEO-designate at Nadex. “As a part of our overall strategic goal, we are actively exploring ways to provide an enhanced trading experience through the addition of Market Makers and futures commission merchants (FCMs). With increased liquidity and tighter spreads, retail traders are better able to capitalize on popular markets based on the underlying spot price and find trading opportunities with limited risk short-term binary options contracts."
The Market Makers not only allow more liquidity of the contracts on Nadex, but also allow for the bid/offer spreads to become much tighter.
Traders are excited to see the increased bid/ask size for easy liquidity and the tighter bid/offer spreads on the markets as a result of the Market Makers.
Austin Gragg from Jacksonville, Florida was recently asked about what he thinks about the new Market Makers. "It is sweet. I have been seeing bid/offer spreads drop from $10 down to $5.00 and even $.50 at times along with a lot more size than normal. I hope they keep adding on more Market Makers for Forex and nighttime traders. This is making it an even better product to trade."
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