Is trading options with a weekly expiration too long? Then the newest binary option contract from Nadex, the 20 minute option, might suit some traders’ needs.
The North American Derivatives Exchange (Nadex), a regulated online binary options exchange in the U.S. announced the launch of 20-minute binary options contracts earlier this week.
The new contracts are geared at retail traders who have a short-term speculative focus and want to get involved in the options market. The new 20-minute binary contracts will be listed between the hours of 9:40am and 4pm EST, Monday through Friday and will only be available on the top U.S. Index products.
Prior to the launch, Nadex options have had hourly, daily and weekly expiration times.
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Nadex’s new binary contracts will have durations of 20 minutes, with expirations on the hour, at 20 minutes after the hour and 40 minutes after the hour. Nine strike levels will be listed for each expiration period. The indices that these will be available on are:
U.S. 500 (underlying CME E-mini S&P 500 Index Futures)
U.S. SMALLCAP 2000 (underlying ICE Mini Russell 2000 Index Futures)
U.S. TECH 100 (underlying CME E-mini NASDAQ 100 Index Futures)
WALL STREET 30 (underlying CBOT E-mini Dow Futures)
“Through researching how our customers trade our current product set, we saw a large demand for shorter-duration contracts,” said Timothy McDermott, chief executive of Nadex. ” We also expect to welcome a new set of cutting-edge retail traders who are looking for the multiple daily profit opportunities, all at a predetermined risk level, that 20-minute binary options contracts offer.”
Nadex is a regulated, retail-focused, online binary options exchange in the U.S. market.
