binary options

[dowtrader2006]

Nadex is a little different because they have multiple strikes. So your ITM return depends on which strike you choose. For example, if you buy the near the money strike at 52 and held to expiration, you would recieve $48 if it finished in the money, less commissions. So if you take commissions into consideration, this would be about 88%. If you bought a strike at 20, you would have a lower probability of finishing in the money, but if you held to expiration and finished in the money, it would be a 300%+ return. But the probability of your strike finishing in the money would be less b/c you are essentially buying an out of the money option. Or at the other extreme, if you bought at 80 and finsihed in the money, your return would be around 22%, but you are in a higher probability trade. So it's really just a different structure -- different strikes each with their own payout percentages.

 

[Trader'sChild]

I don't know if this thread is still alive much but I think most of the binary platform companies are all very similar, and there is money to made rather quickly without the brokerage fees and all. In just less than 1/2 hour I made $73 one my $100 trade. I don't trade everyday but like to know that I can put in a trade when I see the right timing.

 

[alan5616]

I don't know if this thread is still alive much but I think most of the binary platform companies are all very similar, and there is money to made rather quickly without the brokerage fees and all. In just less than 1/2 hour I made $73 one my $100 trade. I don't trade everyday but like to know that I can put in a trade when I see the right timing.

Can I ask which broker you're trading with? Binary options appears to be an unregulated market and I have yet to see a genuine, positive review of any broker. There's plenty of phoney, reviews out there. The general consensus is that none of them are regulated and your trading account has no protection whatsoever.

If you are fortunate enough to have found a binary options broker, that is covered by the FSA guarantee scheme, you have some peace of mind (up to £85,000). I have yet to find one but, perhaps, I haven't looked hard, and long, enough

 

[Trader'sChild]

I don't know if they are covered by the FSA guarantee, but I have made withdrawals before and recovered my initial $500 investment a while back. I still have a good chunk of money in it and make it grow by not turning my trading in to a gambling game. When I do not see a clear trend, I don't trade! This was also the advise I got from one of their brokers and I keep to it.

 

[alan5616]

I don't know if they are covered by the FSA guarantee, but I have made withdrawals before and recovered my initial $500 investment a while back. I still have a good chunk of money in it and make it grow by not turning my trading in to a gambling game. When I do not see a clear trend, I don't trade! This was also the advise I got from one of their brokers and I keep to it.

I'm suspicious of these binary options brokers that are not regulated. Even the binary options element, of IG Index, isn't covered by the FSA guarantee. Or, at least, it wasn't when i last checked a few weeks ago.

If you have found a broker whose integrity fills you with confidence, then that is very important. I haven't reached the stage of placing absolute confidence in a binary options broker. I, always, have this nagging fear of seeing my hard earned evaporate into the ether without the FSA being there to offer me a Kleenex

 

[LosPinos]

I'm suspicious of these binary options brokers that are not regulated. Even the binary options element, of IG Index, isn't covered by the FSA guarantee. Or, at least, it wasn't when i last checked a few weeks ago.

If you have found a broker whose integrity fills you with confidence, then that is very important. I haven't reached the stage of placing absolute confidence in a binary options broker. I, always, have this nagging fear of seeing my hard earned evaporate into the ether without the FSA being there to offer me a Kleenex

Not sure if you have seen any of my other posts on here. I am an ex options trader and now trade my own book from the comfort of my own home. I use binaries a lot and have had many bad experiences, this hasn't put me off as I love the concept of a binary.

I now trade with PYXmarkets who I found a while ago. London based (really, not an apartment above a pizza place). Have an AR status from the FSA. Segregated funds... I don't even deposit with them its through an E-wallet with Paywizard who are also FSA regulated. I can withdraw and the money is back in my account within three days.
The best part of PYX is that they have a genuinely exciting platform not the same as the other up/down for 85% platforms.
I select what I am prepared to lose on the trade. the range I believe the asset will close at the end of the day.... I am then quoted a return in real time and can choose to trade or not. They offer up to 2000% return although a market would have to move a lot for this to be quoted.
Once I have placed a trade I can view my P/L in real time and sell at any point to take profit or cut losses.

I have used the same old platforms that no doubt you all have and have struggled to get my money back. Bbinary claim to be in the US but SEC have a warning notice up about them being a scam.

PYX now has my business and I am confident in their offering so will deal with them until I see otherwise.:clap::clap:

 

[moka2]

now trade with PYXmarkets who I found a while ago. London based (really, not an apartment above a pizza place). Have an AR status from the FSA.
AR STATUS DOES NOT MEAN FULLY REGULATED and covered by FSA and the insurance
and the issue of transparancy remains as they are Market maker

 

[moka2]

When you trad e a certain instrumemnt you need to know that in case of dispute you can verify if the counterparty settlment is based on a price which is teh TRUE Official price on Native exchnage
Reading PYXmarket details

"Closing price is calculated by the last tick received from IDC prior to the stated market close.

All options can be sold prior to market close providing the option value is greater than £2.00

Data Provided by Interactive Data Corporation (IDC)


LOL so the FTSE is not what the offical FTSe is!

 

[LosPinos]

When you trad e a certain instrumemnt you need to know that in case of dispute you can verify if the counterparty settlment is based on a price which is teh TRUE Official price on Native exchnage
Reading PYXmarket details

"Closing price is calculated by the last tick received from IDC prior to the stated market close.

All options can be sold prior to market close providing the option value is greater than £2.00

Data Provided by Interactive Data Corporation (IDC)


LOL so the FTSE is not what the offical FTSe is!

Hey Moka,

All I know is that I am using them and have had no issues. Do you know IDC? They are a huge business so if anything that gives me more confidence.

I do not know how everything works regarding regulation, so apologies for sounding like a novice on this subject but surely if your money is held with paywizard isn't it them you want to have the full regulation not AR as that is where your money is held????????

As I said I am not 100% on any of this but I will have a look and do some research... To me though I think that these guys are a lot more open and honest than any of the others I have dealt with.

Please keep this thread going and let me know if you find anything else on them.

Thanks

 

[moka2]

Los PInos
"All I know is that I am using them and have had no issues" that does not realy mean everything should be taken for granted do read my questions about transparancy and Market Making conflict as comapred to true Exchange traded Products
Reg IDC..imagine this you wish to use the Binary with thsi mob as a hedge against teh Exchange tarded instrument don;t you need to know that you are comapring apples to apples?
Hence teh question an dteh answer I get from them is IDC is big.. evading the real question
I even asked WIlliam Hill and the FTSE Binary is a mixrure of 100 shares and Futures ,,, again that means it is not REAL FTSE as published by official exchange
May be these guys are better than others but hardly anybody has given a straight answe one guy goes on and on about Taxes and anti regulatory..stance etc
so not much point in keeping the thread going as it is like talking to a religious audiance they are already converted and no matter how logicla the questions are the "believers" won;t listen
amen
LOL

 

[LosPinos]

Hahaha, that is true the converted do not change their mind often.

However I am one of the guys that has had a bad experience with other binaries brokers and have just mentioned that I found this one and havent had any issues at present... you are right that may change.

All I know is that is I am going to trade binaries it will be with these not a company based in Cyprus.

Los PInos
"All I know is that I am using them and have had no issues" that does not realy mean everything should be taken for granted do read my questions about transparancy and Market Making conflict as comapred to true Exchange traded Products
Reg IDC..imagine this you wish to use the Binary with thsi mob as a hedge against teh Exchange tarded instrument don;t you need to know that you are comapring apples to apples?
Hence teh question an dteh answer I get from them is IDC is big.. evading the real question
I even asked WIlliam Hill and the FTSE Binary is a mixrure of 100 shares and Futures ,,, again that means it is not REAL FTSE as published by official exchange
May be these guys are better than others but hardly anybody has given a straight answe one guy goes on and on about Taxes and anti regulatory..stance etc
so not much point in keeping the thread going as it is like talking to a religious audiance they are already converted and no matter how logicla the questions are the "believers" won;t listen
amen
LOL

 

[moka2]

I understand ...that they may be nioth better than those in other jurisdctions but again transperancy even with this one is bit murky..
read my to the point questions and you will realise.. I was on a creditor's commitee when an AUS OTC broker went belly up with 47 Million of people's money.. and my faith in OTC has diminished.. others perhaps look at a narrow picture.. and avoide the pinted questions with all teh gobbaligoo or do! best of luck

 

[wackypete2]

Missing badge of shame.

 

[moka2]

@ Moka2 Unfortunately, I do not have my past results on hand...We just recently just tried a new strategy that works well and will begin with a new set of results on 27th of November. If you want to be in the money moka2,I suggest you try us out!! I PROMISE u wont fail with our team! Send us a skype request and you'll see for yourself with the free trial. If your not happy, simply don't subscribe. The ball is in your court moka2..don't miss!!! We're scoring over here @ BOSS SIGNALS

Any body who sells signals and refuses to show any proof FIRST of actual money risked by themselves raises red flags!
If it is so good make your own millions first then sell it to the world!

 

[moka2]

Dear Mr Binaryking

As part of my due diligence I am obliged to ensure that you are not an Australian. Can you please confirm that. Upon confirmation I will send you my money.

C'mon mate what have you got against us lot! :cheesy:

 

[holmes16]

my 2 cents on binary options:

binary options appear to be getting pretty popular with day traders. many aspects of their structure are indeed appealing, but i would keep 2 things in mind before trading them:

1.) i've had the privilege of studying derivatives under some professors who are known internationally for their contributions to the field of derivatives research. I won't drop names, but suffice to say that many of you likely own one of their books. in the course 'advanced derivatives' we covered the pricing of various exotic instruments. at the start of each lecture, the prof would give the background story of the instrument and how it was introduced to the market. every exotic instrument had the same story: someone smart would think of something new, the price would appear to be a good deal, the price was not actually a good deal, eventually the broader market catches on, instrument then becomes more efficiently priced. I can't remember if binary options specifically had this story, but i offer this as words of caution. binary options can be useful, especially in managing risk, but it comes down to whether or not you can bet against the market and be right. and if you can do that on average, then there's probably more efficiently priced ways of going about it (e.g. buying stock on margin).

2. there are a few binary option calculators out there, it's a good idea to use them to calculate the implied volatility of binary options before entering trades.

just my humble opinion - thanks,

 

[moka2]

I hope as you say "..eventually the broader market catches on, instrument then becomes more efficiently priced"
AND gets True Exchange traded so all these issues of Transparancy are reduced
Until then there are many red flags...

 

[nycjosh]

Been playing around with binaries a little. The fees are ridiculous, but im up so far.

 

[moka2]

so wheer are they based? and regulatd any idea?

 

[dbrawner]

Hello folks,

I've posted this question in a few of the other threads so I hope I'm not considered a spammer. It's just that I don't see my concern addressed anywhere in the forum.

I'm a full time trader in stocks, futures, fx, and options; but I'm a newbie to these binaries.

What has me stuck is the negative expectancy built into the system. A typical max loss seems to be 85-100% of the "investment" (bet, wager, etc.), a typical max win seems to be 70% of the "investment". This is a 15-30% negative expectancy and would require a 55% win/loss ratio just to break even over time.

Now the system sellers and all report much higher win/loss ratios but in the real world, over time, these high win ratios tend to break down. At least that's what I've observed since 1983.

Can you really make a reasonable return on investment over time with Binaries or are they just another form of entertainment like casinos?

Thanks,

Dave