NADEX Trading & Market Orders

To whomever reads this

I found out about FX trading through NADEX and have studied extensively with numerous hours/days/weeks under my belt. (Nothing official though). Now over the course of my trading experience, on the forex market, I’ve come to notice something that still continues to baffle me. I’ve found my account (demo on NADEX) all the way from $25K up to about $75K. Recently, I had my account this high and on purpose decided to place an absurd 200 contracts buy order for approx $75/80 (estimation). Also keep in mind this order was on the GPB/USD after hours market trading, time range was from 12-2am EST. Can you please explain to me why the market moved back towards my order strike price even after 1.) my indicators & 2.) price action told me the market was (supposed) to continue in my direction.

I swear, the market was moving up, I placed my order, the market went back down towards my strike price. I sold my position to clear out my order, after it broke the 50/50 mark. And when the market was showing signs (same time frame) of it continuing down I placed another order this time selling. And once again the market (after it broke the 50/50 range this time at 45/55) decided to reverse and move back upwards…to which I say I actually waited for the market to show signs it was continuing down. Once again sold my position at the 50/50 mark to mitigate losses. Finally I decided to put on one more trade and this time saying it was going back up and I swear to you, the market went back down to my strike price, at this point I said “whatever” cause it’s demo money (to be honest poor trading mentality but I really had enough with the market) & rode out that last down, it finished/closed above my strike price and received the full payout, but it still didn’t cover or even explain why the market went intentionally agaisnt me, as if it were trying to scare me out of my initial 200 contract buy position.

So long story short, or rather my question still stands, why did it do all of that moving, in the direction against my order, if it was fully intending on settling above my strike price. How/why do market orders affect the markets movement? It felt extremely rigged, as if someone on the other side saw my order(s) and decided to push the market the opposite direction both times. And finally, if there’s something I’m missing educationally speaking, then it needs to be known to all because I personally believe that is a make or break kind of deal…practically need to know. "Hey be warned that the market reacts to your order(s) in such and such ways.

Thank you/Respectfully,
A very frustrated-seasoned FX NADEX trader

Well post a chart to begin with showing when and where this happened. Then we can go from there.

But I can tell you this much: even if it were a live account your order certainly doesn’t affect price. That is for sure. So either it was a genuine price movement (which is what I want to check for you) or it’s your broker playing games.

P.S.

I thought NADEX sounded familiar. Had to look them up again. I doubt very much it was them as they’re US based and CFTC regulated. That kind of narrows it down. So again: post a chart with details.

Hey I’d like to say thank you for the responsiveness in the reply back, I truly do appreciate any & all feedback in regards to this situstion.

I would like to note, I noticed I listed off the incorrect currency pair before and would like to correct that error; it was the AUD/USD not the GBP/USD. Once again my apologies if this incorrect/discrepancy might play any part to my issue. As far as the charts go I will be uploading them very soon/shortly. I have taken screen shots of 1.) my charts in the hourly timeframe and the 15 min timeframe & 2.) my order history starting when I first placed the 200 contract buy order.

Thank you in advance for your time

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NADEX volume/quotes are choppy on the short-term options. OOM $7 options can end up being bid up to $25+ in a minute or so just from one bidder nibbling on the contract.

Hi.

Well now that you mention AUDUSD and at around those times maybe I already have the answer for you i.e. I posted the below on my thread as a bit of a joke this morning at around 06h30 GMT+2 (which would be around 00h30 EST). If I’m right: Australia cut interest rates this morning hence the move.

This could be a helpful link:

You need a little paranoia to be a successful trader, imho.

Could be the best 32 minutes you ever spent.

Up to you to assess this for yourself.

Once you take that news into account, have a read of this and tell me if there is a better way to trade:

Specifically I found this interesting:
"We typically take a contrarian view to crowd sentiment, and the fact traders are net-long
suggests GBP/USD prices may continue to fall
.

Traders are further net-long than yesterday and last week, and the combination of current
sentiment and recent changes gives us a stronger GBP/USD bearish contrarian trading bias."

Before I go - can anyone tell me what GBPUSD is doing over the past 2 days?

As I said -it’s interesting.

You must understand something about Nadex… there is about a few seconds delay from when the contract expires and a new contract appears… you must notice many many times when the indicative in the last 5-10 seconds hovers around a strike box and at the last moment it decides to go in either direction… i understand Nadex is regulated but my gut is they move in a direction that favor them “the side with the least $$ contracts”
I am speculating obviously but its hard to believe that they profit from contract fees and not from win and losses from contracts… If its rigged I personally feel they aim for the 5 min binaries as the strikes are relatively close… when you are buying day or weekly it would be hard to manipulate… 2 hrs are a bit more safer as well…