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.
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.
I think I’ll just stay away from them and stick to Black Jack when I want to gamble.
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.
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.
Yeah, that’s what I’m gathering. But it just seems another way of pulling some money.
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.
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.
Only 10 types of people in this world, those who understand binary and those who don’t
TOO clever!!! LOL!!!
I traded binary optionsat optionbit.com last year July. I started off with 100 usd. It first hit me to 39 usd. The next day I took it to 350 usd. By the end of the month, i reached 7500 usd. I am not joking. My internet is a bit slow I would attach some of my trades since I saved them here on the laptop. Soon I was at zero again, having withdrawn nothing.
I noticed that the brokers keep manipulating the platform to favour themselves. When this came to my senses I invented a method that hit them hard. I still know how to do this. BUT I have looked at the platforms of recent: the guys added more tricks to favour themselves. It is obvious they make money from losers. So when you lose, it is a smile on their faces.
If you are interested, just let me know by replying to this. I will show you how to get a head of these crooks.
Hi Thanks for your reply. so what is this system that you created which generate funds for you?
I second that question. And what sort of “tricks” should we look out for?
Optionbit had 15 minute Options then(Last yr) on Ten Currency Pairs: Majors and GBP/JPY , EUR/JPY, EUR/GBP.
I would use 5 minute charts, open all the pairs in their respective windows on MT4. My MT4 had sessions indicator(search this on google) for good visibility of trading sessions.
I would look out for times when the markets are not trending; that is no news on ForexFactory. Have you ever noticed, say, a monday when FF news is all yellow, no red; maybe one orange and possibly some whites. That was a perfect day for me. I knew the markets were going to range.
On the 5 min charts, I would scan through all the pairs to see who had a 5 min candle closing out of the bolinger band. If it was out of lower BB, I would make a Call expiring at the top of the current 15 minutes. If upper BB, then vice-versa.
I had at the back of my brain a technique called “Buy Back A Losing Option”. Supposing a Call shifted in my favour only to come
Hello. Let me summarise:
[B]1)[/B] Optionbit removed 15 minute options. Meaning if I was winning 10 options net, I will now be winning 5.
[B]2)[/B] They still, as before, do[B] “rounding off”[/B] which can make you lose even when you are in the money. E.g. on GBP/USD you decide a PUT Option at 1.43281 Strike Price. If this Option moves down in your favour to 1.4325 expiry, they round of the last figure to 1.4330; this way you lose. It is even in their terms of service.
[B]3)[/B] They have now added about 7-9pips spread. Say on MT4 the GBP/USD reads 1.43281 and they detect guys will be making puts, they now shift “Our Rate” to 1.43211. You make a put and the Option expires correctly at 1.4325. On MT4, you have won; on Optionbit, expiry is correct at 1.4325 and you have lost. In their past expiries they show 1.4325, and u lost!!!
[B]4)[/B] When they know you are going to [B]“Buy Back”[/B] a losing Option, they Tell you “[B]Option not available now[/B]”(TraderXP). When they know Asia session is on, no trading available(Optionbit).
[B]5)[/B] Non-Farm payrolls out, lock options, put technical problems in platform. In a few hours we will be having NZD CPI, take note, TraderXP [B]may pull NZD off the platform.[/B]
[B]6)[/B] Deposit is microseconds; withdrawal 2 weeks.
[B]7)[/B] There is an [B]investment ceiling[/B]. 1000 USD for Optionbit; now 3000 for TXP.
I don’t think that binary options are as bad as Forex trading, in fact i find them safer; simply because they take out the psychological aspect of the trade which almost always works against a trader. The psychological aspect being taken out as you are committing no matter what to the trade and may not alter TP/SL or influence the trade until it is over - something that very frequently leaves traders on the backfoot
So which Binary Options Broker do you work for ‘gainpips’??? LOL!!!
Whatever the case and my crass ‘attack’ above aside: you do have a point i.e. once you’re in a trade you’re ‘committed’ as it were. There’s only one Binary Options Broker that I know of that will allow you to close out a position before the expiry of the Option (at a premium of course).
When I started this thread: as I said ‘Binary Options Beware’. Then somebody made a good point i.e. from a NEWS trader’s perspective they could be a ‘God send’. But as this thread has progressed I’ve reverted back to my ‘Binary Options Beware’ ‘take’ on the subject.
Just my ‘equity futures and commodities’ ‘couple of hundred dollars worth’ of input is all!!! LOL!!!
Now I’m not sure if I’m doing the right thing by posting this because I’m most CERTAINLY not advocating the trading of Binary Options BUT as I did note somewhere on this thread: I think they’re VERY ‘broker integrity dependant’. Here is an advertisement that appeared in this month’s issue of SFO (Stock, Futures, Option) Magazine (published on friday):
(It’s the PFGBEST advertisement to which I’m referring).
I haven’t bothered to look for broker reviews but I’ve at least HEARD of PFGBEST and I’m ALMOST sure that they are a regulated broker in the USA (and not some small Binary Options ‘scammer’ registered in Greece).
I’m posting this because I’d ‘bet my bottom dollar’ that in spite of everything said on this thread and all of the warnings more than one person will have thrown ‘all caution to the wind’ and opened a Binary Options trading account somewhere. Put it this way: if there is ANY chance of Binary Options being profitable then it would be with a regulated and well known broker so this post MIGHT help to give you at very least a ‘fighting chance’ if you want to try them.
And note: I do not (OBVIOUSLY) work for PFGBEST nor do I have anything at all to do with them i.e. I’ve just heard OF them now and then is all. Just thinking of ‘you all’ is all. As should be done with any broker: do your research and look for reviews about them. There’s bound to be some around.
[B]“if there is ANY chance of Binary Options being profitable then it would be with a regulated and well known broker”[/B]. Thanks Dale for this. Definately that is what a serious Options Trader should look out for.
Look: from the little bit of research that I did do whenever it was (which I noted in one of my posts on this thread i.e. I’m not sure which one) Binary Options must be / are ‘valid’ trading instruments. I say this because its either the CME or CBOT (I forget now which exchange offers them but it’s easy enough to find using Google I’d say) that offers them. It’s these Binary Options brokers that ‘promise the earth’ with their ‘in your face’ advertising and ‘profit promises’ and offer humongous deposit bonuses etc. that will give them a bad name. I’ve never gone any deeper into this but I would imagine that accounts with brokers that ACTUALLY trade on the exchanges would require big deposits not these $100 accounts (I’m surmising here of course). Put it another way: to trade futures with futures brokers in the US you need, in most cases, some SERIOUS ‘maintenance margin’ if you’re going to keep positions open overnight. That type of thing.
Anyway: they’re not for me but hopefully the information contained on this thread will help new traders who happen to stumble across them and decide to give them a shot a fighting chance is all. One thing I did notice in that ad referred to: it would SEEM that with that broker you can take profit off the table up until a certain point in time before the option is to expire so you’re not totally ‘committed’ as I noted in one of my posts above (at least I THINK it was me that made that point)!!! Sorry: I’m not quite ‘with it’ today (tired).