Nadex trading binary options.

[htrumbo2]

Is the income from trading Nadex binary options taxed at ordinary income levels.

[Holly W]

Hello htrumbo2, 

Thank you for joining us today !

The IRS is treating Nadax Options as Section 1256 investments and Straddles and to be reported on Form 6781. 
According the the Nadex Website, you should receive a 1099-B Annually to assist you in reporting your sales, etc. 
For tax purposes, every Section 1256 gain or loss is treated as being 60% long term and 40% short term, no matter how long own it.  

This TurboTax article on Section 1256 Contracts & Straddles will go into further explanation.
Good luck in your future trading!