Nadex Adds Two New Market Makers to Its Growing Exchange: Liquidity Brings More Liquidity

It’s not just traders who jump on the Nadex exchange to trade Nadex spreads and Nadex binary options. Market makers are also joining us in seeing the huge opportunities that exist. Traders have grown more and more not only in the number of participants, but also in the number of transactions. 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 attracts more market makers and the cycle continues.

In 2013, Nadex experienced more than 100% year-over-year growth. It grew even faster in 2014, growing 49.8% in the first quarter.

At the start of the quarter, Nadex added EUR/USD and USD/JPY overnight binary expiries and 24-hour binary options expiries to these two popular currency pairs. Nadex continued to add contracts as it ended the quarter by adding five daily expirations to all currency pairs.

It also added overnight expiries to both GBP/USD and AUD/USD, with additional currency pairs and the Nikkei 225 (Japan 225) intraday overnight binary options contracts. Demand continued to grow. In the 2nd quarter, Nadex continued its expansion by adding EUR/JPY to its 24 hour binary options contracts.

Traders quickly jumped on board to trade on the Nadex exchange to afford to trade both Nadex binary options and Nadex bull spreads. Nadex’s continued addition of markets and expiries allows traders day and night to trade popular US and foreign indices, popular commodities and foreign currencies.

Traders benefit from massive leverage, but without the massive, uncapped risk. Traders range from traders with $100 in their account to six or seven figures. Nadex has built a model that allows easy and straightforward entry for a new or experienced trader to trade on the exchange. It is the only regulated binary options exchange in the United States that focuses on the retail trader in forex, commodities and indices.

Group One Futures Trading, LLC publicly joined Nadex as a market maker on April 21, 2014. Group One and its subsidiaries form one of the largest privately held options trading companies in the United States. In a recent press release, the CEO of Group One and the CEO designate of Nadex commented on the addition of another market maker to Nadex. Group One will primarily focus on index and commodity contracts.

“Nadex is a well-respected exchange and we are excited to have the opportunity to build markets there,” said John Kinahan, interim CEO of Group One. “Group One provides competitive liquidity across a wide range of markets and Nadex gives us the opportunity to bring our skills to a retail-focused market with innovative and exciting products.”

“Group One is an expert in its field and will help provide additional liquidity in our most traded markets,” said Tim McDermott, CEO Designate at Nadex. “As part of our overall strategic objectives, we seek 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 potential members of the exchange.

Doyen, LLC publicly joined Nadex as a Market Maker on April 28, 2014. Dean will create markets in some of the most 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 time frame. 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 the CEO designate of Nadex commented on the addition of another market maker to Nadex.

“Joining Nadex as a market maker gives us the perfect opportunity to take advantage of the benefits offered by the contracts available on the exchange,” said Viktor Prokopenya, CEO of EXP (capital) Limited. “We are very active in the forex market, as well as other markets, and believe that the additional liquidity and tighter spreads provided to traders on Nadex, thanks to 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 part of our overall strategic objective, 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.”

Market makers not only allow for greater contract liquidity on Nadex, but also allow bid/offer spreads to become much tighter.

Traders are excited to see the increase in the size of the bid/ask for easy liquidity and the tighter bid/offer spreads in the markets due to market makers.

Austin Gragg of Jacksonville, Florida was recently asked what he thinks of the new market makers. “That’s nice. I’ve seen bid/offer spreads drop from $10 to $5.00 and even $0.50 at times, with a lot more size than normal. Hope they keep adding more market makers for Forex and night traders. This makes it an even better product to trade.”

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