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How to short the S&P 500 using Nadex Binary Options

Learn how to short the S&P 500 using Nadex Binary Options.

Watch this video to learn:

How to open a short position.
How to trade stock index markets with Nadex.
How you can profit from movements on the S&P 500.

This quick, simple tutorial is the perfect place to begin.

How to short the S&P 500: video summary

In this video, you'll learn how to sell a limited risk binary option to short the S&P 500.

Step 1: log in to your Nadex trading account

Then click ‘binary options’ on the left-hand side of the platform.

Step 2: pick your market

Go to ‘US 500’ and pick a contract duration option. In this example, we chose ‘daily’.

Step 3: choose a contract

This will populate a chart showing the price of the S&P 500, and bring up an order ticket.

You’ll see the contract specifics on your order ticket:

Will US 500 (Sep) finish higher than 3267.0 @ 4:15 p.m. ET at the end of the day?

Step 4: take a short position

Click ‘sell’. This means you’re predicting the S&P 500 will not finish higher than the strike price selected. The red highlighting on the chart shows where the contract would have to settle at expiration to make it profitable for you.

Your potential maximum profit or loss is clearly shown before you enter the trade (excluding exchange fees).

Maximum risk: $65
Maximum potential profit: $35

Step 5: wait until expiration or close out early

This can lock in profits or limit losses. To close a short position, you’d simply buy it back at the current market price by clicking on your open position, populating an order ticket to reverse out of your trade.

And there you have it. You can now leverage Nadex Binary Options to trade the short side of the S&P 500.

Learn more about binary options trading

Learn what binary options are and how they work.
Know the basics? Explore how to trade binary options.
Understand stock indices trading using binary options.

Try binary options trading with no risk at all. Download a Nadex demo account – you’ll get $10,000 in virtual funds to practice shorting the S&P 500.