How to short the S&P 500 at Nadex
In this video you'll learn how to sell a limited risk out-of-the-money binary option to short sell the S&P 500. Let’s get started.
Once you’ve logged onto your Nadex trading account, choose one of the trading products: binary options, call spreads, or knock-outs. Click on a product, then one of the market classes, and then select one of the expirations beneath one of the contracts. In this example we’ve clicked “Binary options”, “Indices”, and then “Weekly” under “US 500”.
Next, click on the specific contract you’re interested in to populate a chart of the product as well as bring up an order ticket on the right-hand side of the platform.
You will be able to see the current price of the market and the respective strike prices of each daily binary option.
In the order ticket you will be able to see that you are predicting the US 500 (Jun) will not finish higher than (X) @4:15 PM.
At the bottom of the ticket the max loss and max profit of this trade will be clearly shown. It will show that you are risking roughly $30 to make a $70 profit. As a seller, this is an out-of-the-money trade. This means the dollar amount you are risking is lower and your max profit potential is higher.
And there you have it. You can now leverage Nadex binary options to trade the short side of the S&P 500.
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