Nadex Silver Investing Tips and Strategies

You want to speculate on the price of silver. But, you really don't want to risk thousands and futures and options markets require a large capital investment. There is a great alternative that allows you to speculate on the price of silver on a weekly, daily and even hourly basis. Consider using the NADEX (North America Derivatives Exchange) to speculate on the price of silver.

What is the NADEX?

The NADEX is a U.S. License and Operated Derivatives Exchange based in the United States. You can speculate on the hourly, daily and weekly price movements of gold, silver, Dow, S&P, Nasdaq, Currencies and Commodities. You can start your account with as little as $100. And you can make a big return in as little as an hour. However, if you want to speculate on gold, with the Nadex, it is critical to know what you are doing.

Trading on the NADEX

There are two ways you can trade gold on the Nadex.

• Binary Options - A binary option means you take a position that gold will close above or below a given price at a certain deadline. For instance, let's say you believe the price of silver will be higher at the end of the U.S. stock marketing trading day (4:15 PM EST). And the opening price of silver is $35. You would find binary option that says Daily Binary silver $35. And you will buy this option for $55. If gold is higher than $35, you will receive $100. If silver is lower, you lose your $55. Binary options are available for hourly, daily and weekly expiration.
• Spreads - A spread is a price range that allows you to manage your risk. Let's say you believe silver will be higher at the end of the day. You can buy a daily silver spread with a price range of $33 to $37. The spread has a value of $500. And with the price of gold at $35, you buy the contract for $250. If the price goes over $37, you get $500. If the price is below $33, you lose your $250. However, if the price is up slightly, let's say, to $35.50, you get $275 in return for a $25 profit.

Before you trade gold on the NADEX, you should consider these tips. If you don't know what you are doing, you could lose much of your capital in a short amount of time. However, if you use some common sense, you can generate reliable profits.

• Avoid all Binary Options - Avoid the binary options because you usually have to pay $55 to win $45. And that means you need a 55% winning percentage in order to profit on a consistent basis.
• Avoid hourly contracts - You may be tempted by the idea of making a big 80% return in one hour. However, you can also burn through a lot of cash if you hit a losing streak.
• Use Weekly Spreads - Weekly spreads are the best way to investing in silver on the Nadex. Weekly spreads allow you enough time to have the price of silver to move in your favor.
• Buy after a down week, when silver is above its 20-day moving average - Silver rarely has a down week, when it is above the 20 day moving average. However, when silver is down and still above the 20-day moving average, it is your time to strike. You should buy a weekly spread on Monday and close the position on Friday.
• Buy a weekly spread in silver when silver, gold and the S&P are all above their 20 day moving average - Silver is unique because it has a foot in both the commodity arena and the industrial production arena. When both gold and the S&P are above the 20-day moving average, chances are silver will accelerate to the upside. Open the weekly silver spread up on Monday and close at the end of day, on Friday.

The NADEX is an excellent way to speculate on the price of silver with a limited budget. You should avoid hourly options and binary options. Focus on weekly spreads when silver is above is 20-day moving average, after a down week. Also buy a weekly spread when S&P, Gold and Silver are all above their 20-day moving average.

When you visit the NADEX, you will have the opportunity to open a DEMO account and trade with $5,000 fictional dollars. Use the demo account as an opportunity to trade these strategies and see if the NADEX is right for you. With the right research, you will be able to generate great profits, with little capital, with silver weekly spreads on the NADEX.