Start your own Binary Options

[moka2]

I would like to dicuss how one can build 100's of Binary Options by simply using Exchange traded Call or Puts
Buy Call Spread = Buy Binary with a fixed P/L

It is that simple

For example Dow Jones Index has Cash settled Weekly and monthly Options
DJX base code

Anybody thought about this over the web based "Other Binary"

 

[davidfielder]

You are right, but it's not useful for those looking to day trade on expries lower than weekly or monthly.
Most traders want to trade the changes minute by minute or hour by hour. I can tell you that the highest volume at binary brokers are bring done on 60 second options.

Smart traders aren't doing that. But it's just a fact. But the smart traders are taking advantage of retail brokers in another way. You see, the retail binary brokers have no way of combating profitable traders in situations where the savvy trader sees a break coming but can't assess how deep the resulting break will take the asset OR the trader does know how far it will break below a specific point but the move will not surpass the profit potential possible with the 70% + payout available at the binary broker.

In cases where the move is intraday, very big, and low risk - underlying assets have the clear advantage
For long term trades where the size of the move is unknown, then your strategy would work great
And for short term trades where the move is intraday but of unknown size binary have the advantage

At least that's how I see it

 

[moka2]

Yes I see etha dvantage of being able to trade intraday via these innovative instruments.. my problem is with the fact that it is OTC with all the negatives attached and the fact that most broekrs hide in the Cyprus Jursdiction! otherwise teh product sure has advantage.. hey may be some of them consolidate and start a true exchange in USA or UK!

 

[davidfielder]

Hi
Yes, it will be good for the industry as whole when things get into proper regulation.
We'll see. But I don't see a reason why not try it. Ask around who a good broker is, keep your funds limited in any single account (like nothing more than 25k) and move on from there.

If you need assistance choosing a broker, there are loads of articles here, people you can ask, etc...
Feel free to ask my opinion as well

 

[moka2]

Hi
Yes, it will be good for the industry as whole when things get into proper regulation.
We'll see. But I don't see a reason why not try it. Ask around who a good broker is, keep your funds limited in any single account (like nothing more than 25k) and move on from there.

If you need assistance choosing a broker, there are loads of articles here, people you can ask, etc...
Feel free to ask my opinion as well

Mate would you risk even 5 k with a broker in such "questinable" places and where the product is not transperent?
From you other post it is very clear that you wish to promote this product no mattter what other's point out to you so there is not much point in asking your "Opinion"
It is very clear now that rather than trying to answering soem very specific Questiosn about product shortcomings you keep going on abut generic things

 

[davidfielder]

I have no idea why you think CYSEC is any worse than the FSA.
You haven't pointed that out
Not that I necessarily disagree - again, it's like i said in our other conversation, it's about product.
What product fits what traders
Exchange traded products are wonderful for those who want them
OTC are great for those who want them as well

I have no idea what's questionable about regulator X vs regulator Y.
CYSEC is under MIFID, so as I said before - are you calling all of Europe's standard a joke?
I don't think you are really in position to say that especially if you are clinging to this deranged notion that the FSA or NFA have the customer in mind with their regulatory practices. I have already proven to you that beyond a shadow of doubt that the FINRA (CFTC/NFA) situation is nothing more than cronyism for the futures market. The FSA only cares about "compliance" not real help for the retail traders.

So not sure at all what;s generic or problematic with what Im saying.
I don't think anyone but you is disagreeing with me either

 

[LosPinos]

Hey Guys,

Moka, if you are after exchange traded binaries issued by a regulator with a decent name why dont you look at NADEX.

 

[davidfielder]

That's true. If all you're after is a regulated exchange type broker - that's the place to go.

 

[moka2]

Yes I did look at Nadex which is Exchange in a name only it is IG markets .. the counterparty is IG markets = market making ...DO you undersatnd what Counterparty Risk means?
I guess better than all the $2 companies offering Binary but still unlike main exchanges wher the Exchange is much more established and Ndex is just CFTC regulated
A said before except the short expiary advantage everything that these Binary are offering can be easily constructed on hundreds of instruments by simply using Exchnage Traded Options in a much better and transparant way . I have already jotted down the advantages
By the way the firm you are using PYXmarkets is an appointed representative of Merchant Capital
I talked to them and look what I found about
Then comapre this with as an exampel you are using regular Option broker like OPtions Express or Interactive Broker.. YOU MONEY is protected under SIPCBut then again our friend David think that client money protection is not a big deal.... unless you have millions at stake
So my friend I can see that as comapred to cyprus based firms one is perhaps wise to use Pyx Markets or IG / Nadex but none of these coem clos eto the advantages of using Exchange Traded Options constructed Binary payouts

".....
In the event of default by or insolvency of PayWizard the Financial Services Compensation Scheme does not cover e-money.

Yours sincerely


Hugh Fleming
Company Secretary

Merchant Capital Limited
34 Lime Street
London
EC3M 7AT

Tel: +44(0) 20 3544 4793
Fax: +44(0) 20 3544 4792

Web: Merchant Capital Limited

 

[davidfielder]

Then stop preaching and trade at option express
Obviously nothing I or anyone else says about this matter is of interest to you
I DO NOT think that trading OTC via an exchange makes sense for many reasons beyond just expiries. The sheer ease of using one of these retail brokers is far and beyond and building of mathematical models to replicate what's already available. Certainly not for the novice traders. Why would they bother? Your argument only makes sense for big and established advanced traders. Not for the little guy

Come up with a better mouse trap
Better than what's out there !

 

[moka2]

And you stop promoting what is essentially a questionable product offering.... you through blog have vested interest why don;t you disclose if you get fianncail benefits also ( nothing wrong in it just disclose it)

By the way I do trade with OE and I also have an account with IG markets and no I am not a big indusrty insider just bloke who found out what diff risks are out there apart from market risks
Teh day one of your Binaray gus either spikes teh price and takes you out or take your money and runs you will realise

 

[Razorsharp1]

Interesting thread. Look forward to reading more.

 

[davidfielder]

OK- I have a very hard time understanding how you put IG and OE in the same sentence after this long of a diatribe. The only thing I can understand from all this is:
1. You are probably an IB of OE. No other explanation in my mind why you would waste all this time trying to make me understand something that requires no work to understand. Just go to a retail broker (which you already did by going to IG) or don't. But don't lambast me about regulation if you are willing to put your cash in the end with a regular retailer.
2. my blog IS for the betterment of the community. And yes I BASH incessantly those brokers who have done harm to traders. Just look what I did to XP Markets; half of their traffic now comes to my site instead of theirs. And that's just because they were greedy and ruined a good thing. But market forces are pushing clients away from them and into the arms of better acting brokers. I know some of the people first hand. I know the bad from the good. But if any client would have read the T&Cs, they would have turned and ran away. Problem is, they didn't. So in this case, most of the retail clients turned into the losers. But that is just as isolated an event as the cases pointed out in the REGULATED forex market in the US, Japan, UK, and EU. Bad apples everywhere - get used to it

 

[LosPinos]

OK- I have a very hard time understanding how you put IG and OE in the same sentence after this long of a diatribe. The only thing I can understand from all this is:
1. You are probably an IB of OE. No other explanation in my mind why you would waste all this time trying to make me understand something that requires no work to understand. Just go to a retail broker (which you already did by going to IG) or don't. But don't lambast me about regulation if you are willing to put your cash in the end with a regular retailer.
2. my blog IS for the betterment of the community. And yes I BASH incessantly those brokers who have done harm to traders. Just look what I did to XP Markets; half of their traffic now comes to my site instead of theirs. And that's just because they were greedy and ruined a good thing. But market forces are pushing clients away from them and into the arms of better acting brokers. I know some of the people first hand. I know the bad from the good. But if any client would have read the T&Cs, they would have turned and ran away. Problem is, they didn't. So in this case, most of the retail clients turned into the losers. But that is just as isolated an event as the cases pointed out in the REGULATED forex market in the US, Japan, UK, and EU. Bad apples everywhere - get used to it

David, nail on the head.

Moka - I am an ex options trader, for many year I traded a great deal of a large banks money. I now have other business interests and trade many different accounts... for fun and to keep the old brain ticking over. I can model what I want and assess pro's/cons from that. Thanks for the info but as I said at the start I trade with X-O, IG, PYX and CMC.... you havent changed any of that activity.

 

[davidfielder]

David, nail on the head.

Moka - I am an ex options trader, for many year I traded a great deal of a large banks money. I now have other business interests and trade many different accounts... for fun and to keep the old brain ticking over. I can model what I want and assess pro's/cons from that. Thanks for the info but as I said at the start I trade with X-O, IG, PYX and CMC.... you havent changed any of that activity.

And just to show that I too am impartial - I agree with LOS
You have chosen some great brokers, each in its' own right and own industry and I can't tell you "mistake".

Sure, I promote others. Sure, I trade at others. But when a trader makes a rationale decision to work with what I think is a good broker, who in the world am I to say otherwise. So Kudos on a good pick

Am still checking out PYX, but from the look of things - they seem rather interesting. No regulation from what I gather, not that I particularly care. I think my readers may want to know about these guys. We'll see. Not sure the casual trader will take to it. Readers of my blog at whyoptions.com are newbs and want to know how to get in the market in an easy way. Not really looking for more complex methods or strategies (for the most part) so at the bare minimum I know I will enjoy investigating their pros and cons even just from a journalistic point of view as they really are attacking the binary industry from a really neat and elegant angle.

 

[moka2]

Daivd I had IG account way before I started looking in to the risk issues.. I only mentioned it becasue you satrted accusing me of being a promoter of OE
Al I am doing is highliting what I found after the broker collpase in AUS whcih was a Saxo White Label parner wher I saw lots of "Retail trader" mum and dad conned hence the red flags when I see these Binary product
The very Retail traders you keep mentioning who needs protection
I have been honest and have mentioned that there are certain attractivness to Binary just the way CFDs have over real share trading so I have not being one side and being balanced
On the other hand instead of addressing the shortcomings based on facts of the product you go on a diatribe of Taxes and Govt control on some sort of ideology
LOL was when you said don;t worry about client money safety unless you have more than 25K!

Any way now you are getting visious and personal

 

[moka2]

LOs Pinos if you are doing it for "to keep the old brain ticking over" fine and if if you can afford to take that additional risk that is fine ( I was only demonstrating a technical alternative.. not promoting Oe or anybody for that matter)
I am not interested in changing your mind
But do you see the technical points I have raised and how harmful it can be for unsuspecting?
and that is precisisely what the vested interest don;t want the retail trader to know
so they wil blame all and sundry Govt, Tax laws, Socialist blah blah blah

 

[davidfielder]

But that's my point exactly. You are mentioning product X as it relates to product Y. You are saying that ASIC is bad regulation but stating that the NFA or SEC are any better for the consumer (without pointing out how or even why whereas I have shows that it's not the case).

 

[LosPinos]

LOs Pinos if you are doing it for "to keep the old brain ticking over" fine and if if you can afford to take that additional risk that is fine ( I was only demonstrating a technical alternative.. not promoting Oe or anybody for that matter)
I am not interested in changing your mind
But do you see the technical points I have raised and how harmful it can be for unsuspecting?
and that is precisisely what the vested interest don;t want the retail trader to know
so they wil blame all and sundry Govt, Tax laws, Socialist blah blah blah

Okay great, that's all fine but I as a retail trader take responsibility for my own money. It is down to me to check whether my funds are safe.... if they are great, if they aren't I just make regular withdrawals and do not leave a great deal of cash on account... and if the broker tells me my funds are safe then I do some digging and find they are then I just leave them and never return... simple as pie.

Everyone I trade with either has security of funds or doesn't try to tell me they have when they haven't so again I am more than happy.