In its continual efforts to offer more trading opportunities, Nadex has submitted to the Commodity Futures Trading Commission (CFTC) its intent to narrow the strike width in its Copper and Natural Gas Binary Contracts. It will narrow the strike widths on both the Daily and the Intraday contracts of both instruments.
Copper
The strike width on the Daily Copper Binary Contract is currently at 0.02 and will change to 0.01. The Intraday Copper will narrow to 0.005 from its current 0.075.
Natural Gas
Daily Natural Gas Binary Contracts will narrow from 0.04 to 0.02. The Intraday Contract will move from its current level of 0.20 to 0.01.
Narrower widths are more tradable.
When the widths are narrowed and improved like this, it allows for closer strikes which then offer more trading opportunities. If there are big gaps between strikes, there are fewer trading opportunities.
It can be very frustrating to watch your charts, see the perfect trade setup only to find that there is not a matching strike that would enable you to execute your trade. If the strikes are closer, there is a better chance you will be able to find a contract that will let you enter the trade.
Nadex has also announced plans to add additional strikes in the Intraday Copper and Natural Gas Binary Contracts. This will bring each instrument up to a total of nine strike levels.
All of these changes go into effect on March 16, 2015. You can learn how to trade binary contracts for free at www.apexinvesting.com, a service of Darrell Martin.
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