Binary Options. Beware!!! - Page 2
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  1. #11
    Join Date
    Apr 2011
    Posts
    1
    A Binary Option is best described as a the type of option where the return is seen as one of two positions, either a fixed amount of some asset or nothing at all.

  2. #12
    Join Date
    Sep 2007
    Posts
    495
    I think Oanda's "boxes" are the same as binary options. Can anyone confirm?

  3. #13
    Join Date
    Feb 2009
    Location
    Great North Woods
    Posts
    1,084
    Quote Originally Posted by dusktrader View Post
    I think Oanda's "boxes" are the same as binary options. Can anyone confirm?
    Yes very similar with the same pricing that favors the broker. A "Box" is drawn by the trader it can be a hit or miss box, depending on how the box is drawn it can be just like a regular binary.

  4. #14
    Join Date
    Dec 2010
    Location
    Oklahoma
    Posts
    340
    I think I'll just stay away from them and stick to Black Jack when I want to gamble.

  5. #15
    Join Date
    Mar 2007
    Location
    Johannesburg, South Africa.
    Posts
    4,618
    Hello,

    Well I don't know anything about Oanda's 'boxes' but Shr1k's earlier reply that included a note about trading the news is what captured my interest after I'd just 'slated' these things!!! LOL!!!

    By the way (just to explain to those that may be interested): they're called Binary Options after the Binary Numbering System in which the numbers are either ZEROS (0) or ONES (1). This pretty much is the way that computers 'understand' things at the end of the day and a ZERO (0) in a Binary Number means the 'Bit' is (turned) off and a ONE (1) in a Binary Number means that the 'Bit' is (turned) on. In other words: it's an 'either / or' outcome is all unlike with 'normal' options where there are a great number of complicated permutations (well I say complicated because they've been explained to me at length and I still don't get them)!!! LOL!!! So there's a little bit of useless information. Although I do believe (possibly understand???) that they're not that far removed from what are called a 'Vanilla Option' (don't ask because I don't know)!!! LOL!!!

    As I said: I believe (based on my messing about with them and what I've read) they are legitimate trading vehicles and, logically speaking, should be 'the ticket' for a news trader i.e. for one thing you don't have to worry about slippage theoretically i.e. as long as the price touches the predetermined (available) price made by the Binary Options Broker (perhaps therein is where the 'catch' lies) then the Binary Option expires 'in the money' and, again, theoretically, there can be no argument about it. My problem is that with the small amount of 'playing around' (demoing) these things I saw things at various brokers that I just didn't 'like' but I'm pretty sure that there are indeed some regulated Binary Options Brokers out there.

    Regards,

    Dale.

  6. #16
    Join Date
    Mar 2011
    Posts
    20
    Hi Dale, hope you are doing well, nice to see the amount of experience that you have in forex. i have started my school at baby pips.com to learn to trade however i am finding it tough thou. i am also residing in johannesburg and would like to know if you can give me some advice on forex trading. looking forward to hear from you.

    Regards

    Faisal

  7. #17
    Join Date
    Jul 2010
    Posts
    322
    Quote Originally Posted by elsielefe View Post
    A Binary Option is best described as a the type of option where the return is seen as one of two positions, either a fixed amount of some asset or nothing at all.
    Yeah, that's what I'm gathering. But it just seems another way of pulling some money.

  8. #18
    Join Date
    Mar 2007
    Location
    Johannesburg, South Africa.
    Posts
    4,618
    Faisal,

    My man!!! Johannesburg!!!

    I'm not sure how to answer you though. If I go into my trading equities and commodities vs. FOREX argument here I'm going to 'knifed' as usual!!! LOL!!! Which is only fair I guess given that this IS a FOREX site.

    Put another way: if you want advice and input from ME then it's better you go and visit my homepage (click on my username 'dpaterso' and then on 'Visit Homepage') otherwise I'm going to get into a trouble here AGAIN!!! Bottom line: I don't believe FOREX is 'the way to go' (that's the statement that usually gets me into trouble). Although I CANNOT tell a lie (to everyone else): I am INDEED keenly watching certain FOREX pairs at the moment for some L-O-N-G term trades (but I guess they won't interest anybody here either given that they are 'exotics' and have spreads in the region of 400 pips or more etc.)!!! LOL!!!

    But I'll help you as best I can either way / any way so if you've got particular questions then feel free to ask. You're very lucky in the sense that you've found this site (PITY IT LACKS AN EQUITIES AND COMMODITIES FORUM)!!! LOL!!! There's some very good, honest, experienced, and knowledgeable FOREX traders around here who are only too keen to help.

    vosterfxandy:

    I agree with you BUT as I noted: I do believe that it's MORE 'broker reputation' dependant than is 'normal' trading and therein lies the problem. I'd be real keen to see how they operate during news releases on LIVE accounts (but I'm certainly not going to put $1 000 into an account to find out)!!! LOL!!!

    As I said: THEORETICALLY they should be a news trader's dream (and remember this coming from somebody that started this thread to initially tell people to stay AWAY from them but I never thought about the news trading possibilities). Also, and if you're good at studying price action and price action alone I don't see any reason why they cannot work. As I said: it MORE so than in 'normal' trading depends on the broker I think. As I noted: I started seeing 'moves' even on demo accounts that didn't make me feel comfortable and one can only assume that if these 'moves' were evident on demo accounts then live accounts would, theoretically, be even worse especially if you're actually making money.

    Regards,

    Dale.
    Last edited by dpaterso; 04-12-2011 at 07:37 AM.

  9. #19
    Join Date
    Feb 2010
    Location
    Wales is beautiful country.
    Posts
    3,823
    Only 10 types of people in this world, those who understand binary and those who don't

  10. #20
    Join Date
    Mar 2007
    Location
    Johannesburg, South Africa.
    Posts
    4,618
    TOO clever!!! LOL!!!

    Well done!!!

    Regards,

    Dale.

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