Members of Nadex have access to a comprehensive trading system, including market depth, historical data services, order entry, position reporting and cash accounting. As of June 2009, the product line offered by Nadex includes equity index contracts, energy contracts, currencies, metals, agricultural products, and event contracts. Event derivatives speculate on the outcome of a particular event, such as sports matches, major elections, economic indicators, fuel prices and inflation, as well as seasonal contracts such as mergers and acquisitions, housing prices in a specific city and even hurricanes. Known as “binary options”, this form of trading allows only one of two outcomes, paying out 100 percent for a correct prediction, or zero if the trader got it wrong. Traditionally part of the off-exchange, over-the-counter market, in recent years binary options are being offered by an increasing number of exchanges.
One of the attractions of trading through Nadex is the low fee structure, with opening and closing orders attracting a minimum fee of $1 and maximum of $7 per contract filled. A settlement fee of $1 per contract settled applies, and no fee is charged for positions that settle with a payout of less than $1. Also, as an introductory offer, new members are not liable for trading or settlement fees for the first 4 weeks of their membership. Existing HedgeStreet members (not Market Makers and Partners) had the same benefit when the changeover to Nadex took place.
To assist traders in becoming familiar with the concept of binary options, Nadex offers a simulated trading experience on their website. Starting off with a balance of $25K, traders can log in and carry out mock transactions at no cost, and with no risk or obligation.