The new Nadex Touch Brackets are awesome! In this video, Gail Mercer, founder of TradersHelpDesk, explains the Nadex Touch Brackets and how she uses them to trade today’s volatile markets, including the futures and forex markets.
Nadex Touch Brackets
In this example, Gail shows you the Nadex Touch Brackets for Friday, January 4, 2019 on the US Tech 100, which utilizes the emini Nasdaq 100 futures contract. The trade had $122 of risk and a profit potential of $478. Since the Touch Brackets are executed on the “IF TOUCHED” basis, the contract resulted in the full profit potential or a risk to reward of $1 : $3.92.
Gail also explains how the Nadex Touch Brackets are different from the Nadex Call Spreads. Basically, the call spreads use the expiration value but the touch brackets use the “IF TOUCHED” method for exiting the trade.
As Gail mentions in the video, in all the Nadex products, traders always have the option of exiting a trade early — regardless of whether it is to minimize their loss or to take profits.