IG Index

[donaldduke]

TBH, I've never understood the point of binaries from the punter's side of the fence. Isn't it effectively the same thing as an underlying index but with a larger spread?

Binaries are volatility plays. You can use them for directional bets but then you are better off with the smaller spread on the underlying if you want to trade directionally.

 

[tar]

Not when i looked.. it about 45K from 3 binary trades.
There was also a last minute outright punt on the DAX which netted 27K.

All the profits effectively came from 3 binary trades and one outright.

Maybe , but why to close his account and cancel his winnings ? they could have limited his betting size like what they've done with you . Apparently there are other elements in the equation , it is a shame that they had to go this route just to cancel his big winnings ....

 

[R.Charnock]

Binaries are volatility plays. You can use them for directional bets but then you are better off with the smaller spread on the underlying if you want to trade directionally.

Knowing exactly how much you stand to win or lose is an advantage, but in all other ways aren't you just completely at the mercy of the bookie?

 

[tar]

TBH, I've never understood the point of binaries from the punter's side of the fence. Isn't it effectively the same thing as an underlying index but with a larger spread?

With binaries your risk is limited ...

 

[BeginnerJoe]

So no chance of front-running if he worked for a rival then!

Why must it be a rival ? Could he not front run his bud's legit institution trade ? Easier that way and more certainty.

 

[donaldduke]

Knowing exactly how much you stand to win or lose is an advantage, but in all other ways aren't you just completely at the mercy of the bookie?

By volatility i mean you can do things option plays like stranges, straddles, iron condors etc.

 

[donaldduke]

Maybe , but why to close his account and cancel his winnings ? they could have limited his betting size like what they've done with you .

That was only a matter of time.. but he was too quick for them.

They should pay up, they owe the guy 70K (assuming he wasnt acting on inside info) update their IT systems to stop this happening again if they dont want to lose 70K in few hours to one account due to unhedged bets. I bet even the DAX trade that won 27K was unhedged as it was newbie account.

 

[BeginnerJoe]

but he was too quick for them.

Too quick like how ? How much did he run away with ?

I think the shop was generous on this occasion. If they pursued it, front running carries jail time. They accused him of acting as an agent most probably to do with the large institution trades in the underlying market at the time of his bets.

 

[tar]

That was only a matter of time.. but he was too quick for them.

They should pay up, they owe the guy 70K (assuming he wasnt acting on inside info) update their IT systems to stop this happening again if they dont want to lose 70K in few hours to one account due to unhedged bets. I bet even the DAX trade that won 27K was unhedged as it was newbie account.

They claim that they've discovered that he didn't provide an accurate information in his application . We've seen his bio : "Product specialist - UK Equities @ UK's largest investment house " , i think this explains the 5-20min binaries big bets . I would love to hear from an IG rep on the matter ....

 

[tar]

Too quick like how ? How much did he run away with ?

I think the shop was generous on this occasion. If they pursued it, front running carries jail time. They accused him of acting as an agent most probably to do with the large institution trades in the underlying market at the time of his bets.

good point

 

[gle101]

By volatility i mean you can do things option plays like stranges, straddles, iron condors etc.

Still the spread is wider I guess. I do not have any experience in trading binaries. Maybe I should look into it as you seem to be making a bundle on trading it.

 

[gle101]

They claim that they've discovered that he didn't provide an accurate information in his application . We've seen his bio : "Product specialist - UK Equities @ UK's largest investment house " , i think this explains the 5-20min binaries big bets . I would love to hear from an IG rep on the matter ....

I don't believe a word on these Twitter posts.

 

[tar]

I don't believe a word on these Twitter posts.

why not ? it goes well with the other pieces of his story and it explains IG's letter as well ...

 

[gle101]

Too quick like how ? How much did he run away with ?

I think the shop was generous on this occasion. If they pursued it, front running carries jail time. They accused him of acting as an agent most probably to do with the large institution trades in the underlying market at the time of his bets.

But why bet on indices like the DAX, quite a big market after all to get the underlying moving, must be a huge player if that is the case. No, I Think he got the bets hedged somewhere else, but again this do not go together with wider spread on the binary trades. Is this guy taking us for a ride, I am starting to amount to that.

 

[gle101]

why not ? it goes well with the other pieces of his story and it explains IG's letter as well ...

A young who wants to show off, that is the way I read it.

 

[gle101]

why not ? it goes well with the other pieces of his story and it explains IG's letter as well ...

certainly IG thought that he was taking them for a ride

what remains to be seen is if indeed there was someone who won that kind of amount then would the SB companies allow that or open T&Cs

But why do you believe his post being authentic? No previous post on this forum, for all we know he might have a reason to get back at IG.

 

[R.Charnock]

By volatility i mean you can do things option plays like stranges, straddles, iron condors etc.

Haven't tried binaries for years, but whatever the strat it must be a worry that you're trading a market entirely created by the bookie, who can apparently reject any trade they don't like, either instantly or in retrospect if by some miracle they make a fat loss.

 

[tar]

But why do you believe his post being authentic? No previous post on this forum, for all we know he might have a reason to get back at IG.

I agree , but what about IG's letter and the statements , it could be fake yes , but why would he do that , and why he disappeared and asked for his thread to be closed just after we discovered his bio ?

 

[tar]

Haven't tried binaries for years, but whatever the strat it must be a worry that you're trading a market entirely created by the bookie, who can apparently reject any trade they don't like, either instantly or in retrospect if by some miracle they make a fat loss.

If you are form the US you can always trade binaries with Nadex exchange , which ironically belongs to IG group as well :cheesy:

 

[gle101]

Haven't tried binaries for years, but whatever the strat it must be a worry that you're trading a market entirely created by the bookie, who can apparently reject any trade they don't like, either instantly or in retrospect if by some miracle they make a fat loss.

Yes and with that kind of stake size, no something is definitely fishy about this whole story. Remember he is in dispute with IG and at the same time he post on this forum with this kind of money at stake, no I don't buy it.