Banks and Binary Options

[BigInTheCity]

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

 

[Georgy Ben]

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...

 

[tar]

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

 

[BigInTheCity]

haha At this moment in time IG index are by far the best all around!