IG Index tighten binaries

[Sharepunter]

Anyone else notice IG have recently changed the FTSE 5 minute markets to close 30 seconds from the end of the 5 minute period rather than 20.
Any increase in time when you're prevented from trading has to be to IG's benefit.

Does anybody on here frequently trade the FTSE 5 minute binaries?

I've also noticed IG have changed their quotes on the hourly binary bets.
They now quote 96-100 rather than 97-100 thus increasing their margin and meaning those punters who wish to close out their positions before the market closes suffer a one point reduction in profit.

 

[donaldduke]

I've also noticed IG have changed their quotes on the hourly binary bets.
They now quote 96-100 rather than 97-100 thus increasing their margin and meaning those punters who wish to close out their positions before the market closes suffer a one point reduction in profit.

Your thread title should be IG widen binaries!

They did this with FX dailys some months ago.

Not only did quotes stop at 96 instead of 97. They also increased the spread in general on daily FX from four/five pips to more like 7 pips. So 45-50 became 44-51.

Revenues in Binary Betting have been flat year on year for IG (actually up a tiny 3%), while spread betting and CFDs have grown much more than this.

IG are trying to squeeze the last drops out of the Binary market, making it harder and harder for the punter to win at it.

They risk losing customers. Gamblers need to psychologically win a certain percentage of the time (even if they still lose money overall). Intermitent winning and losing is the most addictive.

If punters lose too often it reduces the addiction quality that will keep them coming back for more.

 

[shadowninja]

They risk losing customers. Gamblers need to psychologically win a certain percentage of the time (even if they still lose money overall). Intermitent winning and losing is the most addictive.

So you're not winning so much any more, huh?

 

[donaldduke]

So you're not winning so much any more, huh?

I was winning overall.

IG made it alot harder to make money, so i gave up on it, dont do binaries anymore. And that was definitely the outcome that IG were looking for.

But even people who are net losers, they still need to get a feeling that the game is beatable otherwise they wont play it or will give up sooner.

I think the net effect is that IG wont make anymore money by making the game harder.

 

[Sharepunter]

donaldduke - I'd be interested in learning how you know what IG's binary revenues are?
I've read IG's annual accounts and could find no split between binaries and spreads.

Interesting to note in the 31st May 2009 results that IG's average financial revenue per client fell by 18.6% from £3,064 to £2,495.

I specialise in financial binaries and have managed to return a profit in each of the last 12 months..

The 5 minute FTSE binaries have been the main driver of my profits.

Before this current successful period I had two spells each of 3 to 4 months profitable trading. However, these profits subsequently evaporated and turned into losses.
It's taken me 2 years to reach the stage where I am confident of making regular profits - and retaining them!

 

[donaldduke]

donaldduke - I'd be interested in learning how you know what IG's binary revenues are?
I've read IG's annual accounts and could find no split between binaries and spreads.

Interesting to note in the 31st May 2009 results that IG's average financial revenue per client fell by 18.6% from £3,064 to £2,495.

I specialise in financial binaries and have managed to return a profit in each of the last 12 months..

The 5 minute FTSE binaries have been the main driver of my profits.

Before this current successful period I had two spells each of 3 to 4 months profitable trading. However, these profits subsequently evaporated and turned into losses.
It took me 2 years to reach the stage where I am confident of making regular profits - and retaining them!

Take a look at the slide presentations on the IG group website.

http://www.iggroup.com/corporate/2009-results.html

 

[Sharepunter]

Thanks very much for your immediate response!
I'll take a look right now!

 

[Sharepunter]

Interesting - IG make £9m+ a year on binaries - I guess this includes sports as well as financials.

IG recently acquired software from Betsfortraders so I'm hoping they'll soon introduce an increased range of financial binary bets.

 

[shadowninja]

I was winning overall.

IG made it alot harder to make money, so i gave up on it, dont do binaries anymore. And that was definitely the outcome that IG were looking for.

But even people who are net losers, they still need to get a feeling that the game is beatable otherwise they wont play it or will give up sooner.

I think the net effect is that IG wont make anymore money by making the game harder.

What you say certainly makes sense.

 

[sparky62]

Why don't you try betonmarkets or cityodds?

Why don't you try www.betonmarkets.com who offer a much wider range of binary products than IG Index or www.cityodds.com who offer daily range binaries at much tighter spreads than IG.