Banks and Binary Options

BigInTheCity

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Hi

Do any banks actually offer short term binary options? Say EUR/USD that expires on the hour or even less?

The reason I ask is that I was speaking with a person from Banc De Binary and they answered the following:

My Question:

When it comes to betting, if a client wins, do you lose and vice versa?

Answer:

No, we are a middlemen - buying the options from the biggest investment banks in the world (HSBC Holdings, JP Morgan, Goldman Sachs etc...) and selling them to you for a fixed comission. The more you trade and the more volume you generate - the more money BDB (and myself) makes. Of course, in order for you to keep on trading i need you to win as much as possible. That's what we like to call here in NYC a win-win situation.

Regards

Big
 
Well, of course not. They are not a bank... and not buying it from any bank. They are a market maker that creates liquidity, that in itself is not unusual nor wrong ( in most cased exotic options are offered by market makers) , however, among market makers you can find good ones and ..... the fact that you got the wrong answer instead of straightforward answer, is an answer buy itself...
 
No they cant hedge short term bets with regular banks , however they can hedge their short term risk on the binary exchange Nadex , anyway are you comfortable with this 70% return on these hourly bets , did you try anyoption they have monthlies and weeklies , and they have some exotic markets as well like Tadawul index lol
 
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