The North America Derivatives Exchange (Nadex), one of only two US-regulated binary options exchanges, announced this week that its trading volumes in December have set a new all-time record.
The exchange, which is owned by UK giant IG Group, reported over 70% year-to-year growth in trade volume and total trades of binary options during the fourth quarter of 2016 compared to Q4 2015. Nadex also reported an overall increase of 50% in annual trades and volume from 2015 to 2016.
Guaranteed limited risk built into Nadex binary options allows traders to take positions with their maximum possible loss and profit defined in advance. This is a distinctive advantage in volatile markets, as was the case before and right after the US elections. Most traded in December were stock indexes (which lingered near all-time highs), crude oil, gold, forex, and other markets.
Technology enhancements probably also contributed to Nadex’s spectacular results. The latest updates to the mobile and web apps made instant document upload even easier, and withdrawals are just as easy from PC or mobile, with funds sent securely and quickly to member checking accounts.
What is more, the Nadex team added the Market Filter tool to both iPhone and Android apps in Q4. This feature was introduced to the web platform in Q3 and allows traders tosearch for a specific asset class, current price, length of contract, and/or time to expiration (as there are over 10,000 contracts available daily).
"December and the whole fourth quarter showed the unique strengths of exchange-traded binary options," commented Nadex CEO Timothy McDermott. "Whatever market conditions our members encountered, they could take advantage of those opportunities with confidence."
Chicago-based Nadex is the first and the largest US-based regulated exchange offering binary options and spreads to retail investors. It is regulated by the Commodity Futures Trading Commission (CFTC).
Nadex is the North American unit of IG Group (LON: IGG), an international forex and binary options brokerage headquartered in London, which is listed on the London Stock Exchange and is a member of FTSE-250. According to a recent forexbrokerz.com survey on the proceeds of UK companies, IG is the most profitable one for the year 2015. It is also the largest forex broker in terms of market capitalization.