Best Thread Binaries vs CFDs, Warrants, Spreadbetting, Options, etc.

[BinarySoft Chris]

Well if I have a position on a FTSE hourly intraday I like to follow the main other FTSE markets such as the Midday Up/Down and Daily/Up Down, I also follow tennis as well on Betfair.

 

[Baldwreck]

0.0001 wins the day

I have read up a bit about binaries. There remains however a BIG question about these, which seemingly nobody has asked before.

Why??

I mean there is a plethora of financial derivatives out there, with a enormous liquidity and market depth. For what reason would traders use binaries instead of those (or NOT use them, as the case may be... ;-) As a second question, would one do "pure play" trades in binaries or combine them with traditional derivatives?

Any thoughts on this - binaries fans or antagonists - from hands-on experience?

Tx, Bert

Just going back to Bert's original question - I placed a bet on 24th August for the AUD/USD to finish higher than 0.8273 on 7th September. Well it finished at 0.8274 thus winning - illustrating another good reason why I prefer digitals over other choices. Has anyone had a finer winning margin that that I wonder!?

 

[BinarySoft Chris]

Just going back to Bert's original question - I placed a bet on 24th August for the AUD/USD to finish higher than 0.8273 on 7th September. Well it finished at 0.8274 thus winning - illustrating another good reason why I prefer digitals over other choices. Has anyone had a finer winning margin that that I wonder!?

Sure - it's not unusual to see an hourly FTSE intraday finish level, most binary providers settle this as "higher".

 

[Lord Flasheart]

Does anyone think there always seems to be a movement after the half hour on dow binaries. This has cost me a packet many times. I often bet for dow to be down more than 20 pts,Ive got a good price say buy at 15. The bet loses or just misses by seconds. I feel im a genius for calling the move and have often missed it by seconds and win not a bean. Its times like that that infuriate me.

 

[BinarySoft Chris]

The bet loses or just misses by seconds. I feel im a genius for calling the move and have often missed it by seconds and win not a bean.

Can you not close out the bet before the last few seconds?

 

[Lord Flasheart]

Sometimes chris, but theres not normally enough in it as the price often moves my way after the time has elapsed. As u know the dow can move 20 pts in seconds

 

[Baldwreck]

Sure - it's not unusual to see an hourly FTSE intraday finish level, most binary providers settle this as "higher".

I didn't know there were such generous bookies around - must look out for them!

 

[BinarySoft Chris]

I didn't know there were such generous bookies around - must look out for them!

Most of the financial bookmakers settle "level" binary bets as "higher", but a couple of them (Ladbrokes, Cantor Alphabet, etc.) settle it as a dead-heat - i.e. a payout on only half the stake.

 

[telcobert]

I didn't know there were such generous bookies around - must look out for them!

Not generous - the sum paid out is "correct" with both methods. Counting level for the higher price fits well with financial option markets where the Call Option ends in-the-money, and the Put out-of-the-money. The issue is actually close to irrelevant apart from hedging considerations. Mathematically, I like the Dead Heat Rule for being somehow more "right". Practically, I find the Option Rule easier for exposure/hedge calcs.

Bert