What is Current Price or Underlying Market Price?

Free practice account: https://www.nadex.com/demo/?CHID=13&QPID=514243624&QPPID=1&ref=YouTube Learn more about Nadex pricing at https://www.nadex.com/learning-center/glossary.

The current price of a market is the price of the last recorded trade on that market. It allows buyers and sellers to estimate the price of the next transaction.
The next sale price may be different from the current price since changes in supply and demand and other factors may have happened since the last trade. It will be whatever price the next buyer and seller agree upon.
It is similar to the market price, also called the underlying market or indicative price. Traders sometimes refer to the current price as the “print,” from the days when a paper printing marked the settlement of the trade. The first trade of a session, after the opening bell, is called the opening print and its price serves as the first data point in certain calculations.
Underlying market
The market a derivative is based on is called its underlying market. While a derivative such as an option or binary option may be based on, for example, the S&P 500® stock index futures, the price of the option doesn’t move in synchrony with the underlying price. Its price is based on the buying and selling interest of traders. Sometimes, a small move in the underlying can cause a large move in the option and vice versa.
For example, if the current price of the underlying market is just below the strike price of a binary option at expiration, that binary will receive a zero payout. But if it moves slightly above the strike price, the binary will get the full $100 payout at expiration.
Derivatives are instruments for trading whose price is based on the price movement of some other market. That market may be a futures contract, a forex pair, an economic number, or a price index. Derivatives can even be based on intangible numbers like the weather (temperature, precipitation, storms), the price of real estate, or mortgages.
Real-time market price data
You can go online to get free delayed quotes, which are useful for some analysis, but you can’t trade successfully in real time if you give the rest of the market a ten-minute head start.
Live market pricing usually has a cost associated with it. Stock and commodity exchanges charge a fee for their price and volume data, which brokers pass on to their clients.
The Nadex indicative price
On Nadex, the price quotes are live but rather than tracking only the most recently printed trade, Nadex uses a continuously updated average of the most recent prices.
This price is called the indicative price or underlying indicative price, since it is designed to accurately indicate the current market price in a way that is useful for traders.
The calculation is the same one Nadex uses to calculate the expiration price (which is compared to the strike price), but it’s done on an ongoing basis during the life of the contract.

Trading on Nadex involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results. Nadex contracts are based on underlying instruments in these asset classes: forex, stock indexes, commodity futures, and economic events.
Nadex binary options and spreads can be volatile and investors risk losing their investment on any given transaction. However, the design of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U.S. regulatory oversight by the CFTC.

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