smallpotatos said:binary bets are a great idea but when you look at the spread being quoted, 5 points (effectively a price 5% wide), you will begin to realise that the odds will always heavily favour IG (would you trade in a share that had a 5% bid offer spread.
The price is based upon volatility / time to expiry / and the underlying position at the time. Effectively you are trading in a one day option.
In the long run you will lose at this type of betting, your losses will be 5% bigger than your profits!!
Paulds11 said:Not sure how you arrive at losses being 5% bigger at all.. I dont think you can extrapolate the losses like that but one thing is for sure about binery bets
You WILL lose over time simple.
No one made a million using this strategy and I hate the way the product is even offered on their DMA platform. They belong in casinos not on any serious trading platform although they are tremendous fun but I refuse to use the the IG Markets or spreadbetting tools because of this very worrying reason. Please guys do yourselves a favour.. avoid them like the plague.. dont get fleeced like this.. they are like Options but the single biggest problem is the way the spread has an uncanny way of moving against you once you enter a position and it is not based on the market its based on locking you in to a position so you cant exit easily..wake up people.
jules101 said:This is complete rubbish, I know several people who make good money from binary bets (myself included!). If a particular binary provider is shifting the spreads against you when you enter a position, close the position out at another provider!