Knock-outs: Also known as touch brackets, a knock-out contract allows traders to set a weekly ceiling and floor on their trade, which will knock out the trade if reached. This either/or outcome is why they’re called binary options. Here’s a quick rundown on what those are:īinary options: Contracts with only 2 possible outcomes based on a yes or no question, for example, will the price of silver be above $28 by December 2020? If held to expiration, the contract either expires out-of-the-money (OTM) and you get $0 or in-the-money (ITM) and $100 per share. Nadex offers 3 different types of trading instruments: binary options, knock outs and call spreads. A demo account is available for anyone on the fence about signing up and plenty of platform tutorials can be accessed through the Learning Center.
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