The Russell 2000 measures the performance of the small-cap segment of the US equitymarket, which includes nearly 2,000 of the smallest US-listed securities and is constructed to provide a comprehensive and unbiased small-cap barometer.
Nadex said that its binaries are all-or-nothing contracts that pay out a fixed amount to the side of the trade that finishes in-the-money.
According to Nadex, its bull spread contracts have a variable payout; a trader’s potential loss and potential gain will be limited by the contract’s cap and floor. In neither case can a trader lose more than the amount they are required to place in collateral.
Nadex CEO and president Yossi Beinart said that Nadex continues to see rapid growth in trading volume on the equity index based contracts.
"We believe our US SmallCap 2000 products will be a welcome addition for retail traders looking to take a position on near-term movements in the Russell 2000 Index Mini Futures," Beinart said.
Nadex’s product line of binaries and bull spreads includes a range of equity index contracts (Wall Street 30, US 500, US Tech 100, Germany 30, Korea 200, US SmallCap 2000, FTSE 100), energy contracts (crude oil, natural gas), currency contracts (EUR, GBP, CAD, CHF, JPY, AUD), metal contracts (gold, silver, copper), and agricultural contracts (corn, soybeans).
Event contracts, including initial jobless claims, fed funds, European central bank rate and nonfarm payrolls announcements, are also available.
Nadex is a wholly-owned subsidiary of the UK-based IG Group Holdings, subject to regulatory oversight by the CFTC.
Through Nadex, traders can use binary options and bull spreads to hedge against or speculate on price movements in currency, commodity, event, and equity index markets.
