TheBramble
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Binary gives you a number of additional options for taking positions. FTSE UP/DOWN for instance (along with a number of more definite bands with some SBs).
They're useful tools if you get the timing right (as always!), but especially when the indexes are moving little (in points) they can prove more profitable.
They're useful tools if you get the timing right (as always!), but especially when the indexes are moving little (in points) they can prove more profitable.
adrianallen99
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I trade these most days, but you need to be able to understand the market well to make consistant profits from them.
It is easier to make money, like bramble says when the indexes aren't moving much, it is better to use it to compliment spreadbetting. Also if you do trade them, set yourself clear rules for when you enter and exit a position. I try and set a 20 point stop, if it passes through the 20 points I sell, of course you have to use a bit of judgement because often a small movement can result in a big change in binary price followed by it recovering slightly.
I occasionally trade one touch bets, but I sell them and use them as no touch. And I often use to cover against an hourly position reversing when it hits a resistance point.
Ive been using binarybet.com, but recently I have had problems with waiting a long time for an order to be processed - I always get the price I click at, but other day it was a good minute before it was processed. Another problem I have had is if the market is about to close (1 min before expiry), the order can be delayed and then refused because the market is closed.
Happened last week and cost me 30 points, even though I tried to sell with 1 minute and 10 seconds remaining.
It is easier to make money, like bramble says when the indexes aren't moving much, it is better to use it to compliment spreadbetting. Also if you do trade them, set yourself clear rules for when you enter and exit a position. I try and set a 20 point stop, if it passes through the 20 points I sell, of course you have to use a bit of judgement because often a small movement can result in a big change in binary price followed by it recovering slightly.
I occasionally trade one touch bets, but I sell them and use them as no touch. And I often use to cover against an hourly position reversing when it hits a resistance point.
Ive been using binarybet.com, but recently I have had problems with waiting a long time for an order to be processed - I always get the price I click at, but other day it was a good minute before it was processed. Another problem I have had is if the market is about to close (1 min before expiry), the order can be delayed and then refused because the market is closed.
Happened last week and cost me 30 points, even though I tried to sell with 1 minute and 10 seconds remaining.
adrien I also had same problem with IG they told me if price moves>30% from when you cliced button they can refuse.also note they seem to take a long time to execute even when it is not near a market close.
almost as if they look to see where price is going before deciding whether to accept your trade or not!!!
almost as if they look to see where price is going before deciding whether to accept your trade or not!!!
Binary Trading
Anyone used binexx.com yet? It's City Index's P2P binary exchange. Bit fiddly to download but seems like a good platform. Have done a bit of trading on there. Overall good. Fast order entry. As it's an exchange no probs with orders being refused. Not huge liquidity on there yet though but apparently they are soon to expand the range of markets.
Anyone used binexx.com yet? It's City Index's P2P binary exchange. Bit fiddly to download but seems like a good platform. Have done a bit of trading on there. Overall good. Fast order entry. As it's an exchange no probs with orders being refused. Not huge liquidity on there yet though but apparently they are soon to expand the range of markets.
sandpiper
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fatboy,
Had a look at binexx last week. As you say, not much liquidity. The main business they are going to attract initially will be arbers of course.
That's no bad thing, but my overriding concern when I get into a position is where am I going to get out and sometimes on the p2p exchanges, you can't. Still, if you do make use of binaries, increased competition has to be a good thing.
Imo, binary/fixed odds bets in general, are a reasonably cost effective way of trading volatility. Having said that, you will find that everybody has more or less wised up now on the exchanges and it's getting harder to get a decent volatility based strategy on prior to non farm payrolls etc. I have to say, call IG all you like, but at least they are always there to take the other side of your trade (in theory...
)
If you trade price, i.e. direction, then (imo) binaries are a waste of time (unless you use them intelligently as a hedge against another position). It's all too easy to get shaken out of reasonable positions. It's also easy to bloody mindedly stay with with positions that you wish you'd got out of and then find that you can't.
Above all don't labour under the mis-apprehension that the exchanges are full of "punters" who will be easy pickings, or that they are better simply because you will never get an order refused. These days they are frequented by some pretty smart cookies who know every floor based trading trick going. You will get spoofed, dimed, squeezed, etc, many, many times.
Had a look at binexx last week. As you say, not much liquidity. The main business they are going to attract initially will be arbers of course.
That's no bad thing, but my overriding concern when I get into a position is where am I going to get out and sometimes on the p2p exchanges, you can't. Still, if you do make use of binaries, increased competition has to be a good thing.
Imo, binary/fixed odds bets in general, are a reasonably cost effective way of trading volatility. Having said that, you will find that everybody has more or less wised up now on the exchanges and it's getting harder to get a decent volatility based strategy on prior to non farm payrolls etc. I have to say, call IG all you like, but at least they are always there to take the other side of your trade (in theory...
)If you trade price, i.e. direction, then (imo) binaries are a waste of time (unless you use them intelligently as a hedge against another position). It's all too easy to get shaken out of reasonable positions. It's also easy to bloody mindedly stay with with positions that you wish you'd got out of and then find that you can't.
Above all don't labour under the mis-apprehension that the exchanges are full of "punters" who will be easy pickings, or that they are better simply because you will never get an order refused. These days they are frequented by some pretty smart cookies who know every floor based trading trick going. You will get spoofed, dimed, squeezed, etc, many, many times.
donaldduke
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Arent they reviewing the tax status of exchanges.. You might
have to pay tax on profits soon.
The most annoying thing about binaries is you cant place
stops. Stop arent needed when you do a low downside bet.
But if your binary is in the money when you open it you are
forced to watch your position until you close it.
Also the spreads are huge.
have to pay tax on profits soon.
The most annoying thing about binaries is you cant place
stops. Stop arent needed when you do a low downside bet.
But if your binary is in the money when you open it you are
forced to watch your position until you close it.
Also the spreads are huge.
Scripophilist
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There are about four million threads on this subject I think already?
I have been making money on Bins for a while. The things that kill you are the spreads and rapid swings in the index.
I float around on Binary bet and Betfair. Spreads on Betfair can be negligble.
If you catch a rapid swing in the market you can make a fortune. If you catch it in the wong direction then you can lose one!! Normal trading rules apply!!
If you look at Betfair for example. If the market swung from a 50% chance of finish up to a 60% chance and you are on the wrong side you could lose 33% of your stake. Scary stuff.
But I have done very well on these so shouldn't moan.
Worst loss £1750 in one session. I usually get about eight or so sessions in a day.
I have been making money on Bins for a while. The things that kill you are the spreads and rapid swings in the index.
I float around on Binary bet and Betfair. Spreads on Betfair can be negligble.
If you catch a rapid swing in the market you can make a fortune. If you catch it in the wong direction then you can lose one!! Normal trading rules apply!!
If you look at Betfair for example. If the market swung from a 50% chance of finish up to a 60% chance and you are on the wrong side you could lose 33% of your stake. Scary stuff.
But I have done very well on these so shouldn't moan.
Worst loss £1750 in one session. I usually get about eight or so sessions in a day.
I had been trading binary for forex for a few months, my success rate is 70%. Previously when I was trading conventional forex, my success rate is only 20% or lower.
For binary trading, you can make directional bets: you can bet on OVER (means call option in finance terms) OR UNDER (means put option in finance terms).
For binary trading, you can also make volatility bet: you can bet IN (meaning you think the price will not go out of the range) or OUT (meaning you think the price will go out of the range, similar to Strangle strategy).
The easiest to make money is to buy OUT on an important US data night. I do not know if the data will be good or bad, but I know market will be wild on that day. So the chance for the price going out of the range is pretty high.
Platform that I use: MANSION118
The parent company of the platform is the sponsor of Tottenham Hotspur.
See their website: Tottenhamhotspur.com - Home
For binary trading, you can make directional bets: you can bet on OVER (means call option in finance terms) OR UNDER (means put option in finance terms).
For binary trading, you can also make volatility bet: you can bet IN (meaning you think the price will not go out of the range) or OUT (meaning you think the price will go out of the range, similar to Strangle strategy).
The easiest to make money is to buy OUT on an important US data night. I do not know if the data will be good or bad, but I know market will be wild on that day. So the chance for the price going out of the range is pretty high.
Platform that I use: MANSION118
The parent company of the platform is the sponsor of Tottenham Hotspur.
See their website: Tottenhamhotspur.com - Home
Erikthered
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with binary trading you can sleep better at night, coz you can only lose your stake and not go two days later and find that you owe 10 times your stake.
Looking at the real-live example:
Currently GBP/USD is trading 1.9660. In my opinion GBP/USD is the wildest currency among the major pairs. I'm betting that GBP/USD will move out of the range 1.9653 - 1.9683 by 5am China time.
Odds of 1.855 is quite expensive. Meaning if I lose this trade, I'll lose US$300; and if I win, I'll gain only US$90. Since I think the chance of GBP/USD to move out of the range is high, I decide to take the bet.
Image of the platform: Binary Trading: Bet on volatility for GBP/USD
Currently GBP/USD is trading 1.9660. In my opinion GBP/USD is the wildest currency among the major pairs. I'm betting that GBP/USD will move out of the range 1.9653 - 1.9683 by 5am China time.
Odds of 1.855 is quite expensive. Meaning if I lose this trade, I'll lose US$300; and if I win, I'll gain only US$90. Since I think the chance of GBP/USD to move out of the range is high, I decide to take the bet.
Image of the platform: Binary Trading: Bet on volatility for GBP/USD
Erikthered
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I'm afraid not.
The only way is to trade with small small amount first.
Not sure if USD1 is good enough.
Erikthered
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BetOnMarkets.com offer the possibility of a virtual account.
Binary Bets
Thank you. I already have a virtual account there but I could not find Binary Bets there.
Do you know if they offer them?
Thank you.
Thank you. I already have a virtual account there but I could not find Binary Bets there.
Do you know if they offer them?
Thank you.
Fixed odds are binary bets, just expressed in a slightly different way - if you look in the BOM help section it should become clear as to how to interpret the prices quoted on BOM into a conventional binary bet.
Thank you Baldwreck.
I have had a look at the help section, however, it only describes the types of Fixed bets and provides examples.
My understanding is that Binary bets enable us to cut out losses or to take limited profits and close the bets whereas with Fixed odds, there is no this posibility. Once the Fixed bet is placed, there is nothing else to do.
Or is my understanding of Binary Bets wrong?
Thank you in advance.
I have had a look at the help section, however, it only describes the types of Fixed bets and provides examples.
My understanding is that Binary bets enable us to cut out losses or to take limited profits and close the bets whereas with Fixed odds, there is no this posibility. Once the Fixed bet is placed, there is nothing else to do.
Or is my understanding of Binary Bets wrong?
Thank you in advance.
Nodina
Your understanding of binary bets is correct, they are generally quoted with a two way price (a buy and a sell price a bit like a spread bet) and with a fixed payoff. They are technically fixed odds bets but because of the two way pricing you can cut losses and close out for an early profit so in my opinion they combine the best elements of fixed odds (limited risk) and spread bettnig (trade in and out of a position).
I wouldn't bother trying to understand them on betonmarkets, they are not clearly priced and I have no idea how you start closing out an open binary position with them. Try a binary specialist like binarybet or choiceodds where you can see the buy and sell prices updating in real time. And just use small stakes to start with until you understand it all.
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Erikthered
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Nodina,
betonmarkets are offering the possibility to change ( tweak) the parameters even after you placed the bet. Try it with a virtual account.
betonmarkets are offering the possibility to change ( tweak) the parameters even after you placed the bet. Try it with a virtual account.
