In this video, Gail Mercer, founder of TradersHelpDesk.com, shows you why she prefers the new Nadex Touch Brackets for forex. On January 2, 2019, a currency flash crash occurred with the all currencies moving dramatically but the most dramatic was on the USD/JPY, which crashed 474 pips in less than a few minutes.
Spot forex brokers tend to increase the pip spread or halt all trading during these flash crashes. However, with the new Nadex Touch Brackets, a touch of the floor or ceiling executes the exit of the trade. In this example, if the trader had entered the touch bracket on Monday for about $30 of risk then they would have made over $200 when the market crashed. There is no pip spread to pay with the touch brackets — instead the exchange fee is paid ($2 round trip) and the touch brackets have a value of $1 per pip, which makes trading them like trading a mini forex account.
Nadex Touch Brackets and USDJPY Flash Crash
The new Nadex Touch Brackets are now available for live accounts and offer forex traders the peace of mind in volatile markets because risk is limited on entry and, if either the floor or ceiling of the touch brackets are touched then the trade is automatically exited. Based on yesterday’s action, 2019 may be a very volatile year for the currencies and the touch brackets are an excellent alternative for trading forex.