Binary Options. Beware!

[ProTraderJohn]

@busingy

let me show u an example: EURUSD is at 1.29349 on the normal market.

What are you taking (interpreting) as the normal market price to be?

Most people misunderstand how financial data works. Different brokers use different data feed sources.

Here is the list sourced from wikipedia.

• Thomas Reuters (29.4% market share)
• Bloomberg (29.2% market share)
• MorningStar.
• CanDeal
• Capital_IQ
• CarryQuote
• Dealogic
• FactSet
• Fidessa
• Interactive Data Corporation
• IRESS
• Markit
• MetaStock
• Moody’s Analytics
• Morningstar,_Inc.
• SIX Financial Information
• SNL Financial
• SunGard
• Standard & Poor’s
• Net Bridge
• Xignite
• Ziligence

So there is no such thing as a normal market price Busingy. Financial data vendors collect price information from all over the world. These sources include stock exchange feeds, brokers, dealer desk and numerous other regulatory agencies, for example the US Securities and Exchange commission.

The vendors then translate this incoming information into a single normalized number and sells this information back into the market place.

We have covered this issue in a complete case study of OptionBit prices, because so many traders just didn’t quite understand it.

Maybe check it out:

[kingkevbo]

ProTraderJohn

Your first 8 posts are today, all promoting binary options. Anybody would think you are here to drum up business.

[ProTraderJohn]

ProTraderJohn

Your first 8 posts are today, all promoting binary options. Anybody would think you are here to drum up business.

Afternoon Kingkevbo,

Firstly thanks for the reply. My first!

I quite new to forums and hope to contribute helpful and insightful content.

I have come across a lot of misunderstanding in binary options and my posts will attempt to inform traders (like myself) what I know.

My passion is binary options, so it would only make sense that I talk about what I know. Yeah?

or have I misunderstood the what forums are for.

Would genuinely appreciate your feed back?

Kind regards,

John

'To expect the unexpected shows a throughly modern intellect" Oscar Wilde

[kingkevbo]

Ok then, my feedback

We have covered this issue in a complete case study of OptionBit prices, because so many traders just didn’t quite understand it.

Maybe check it out:

OptionBit Review

You use the word we, suggesting that you were part of the review of optionbit on optionbitbrokerreview. The review of optionbit looks a bit like an advert for optionbit rather than a review, including an advertising banner for optionbit.

A whois lookup for optionbitbrokerreview.com shows it was registered by someone with the same email address who registered anyoptions.com, a domain name that redirects you to anyoption.com, another binary option broker based in nicosia, Cyprus.

I assume there is a logical explanation?

[ProTraderJohn]

yes I am contributing with what I think is good content for new traders. Binary Options are incredibly powerful trading instruments.

However I have responded in a proactive manner and removed the link.

Thanks for your feedback Kingkevbo!

All the best.

John

'To expect the unexpected shows a throughly modern intellect" Oscar Wilde

[cupenk16]

I play with a live account and my own money … please see my trading … for futures I can not afford 100% in a month … Binary options but I can 1000% because the rules are different ways to play and my brother all

no the question is for “cupenk”

[Arimont]

Ok, forgive my for my ignorance and/or my lack of understanding, but something doesn’t make sense to me.
I read here and on other places, that option brokers “play the numbers” against the traders and it make me wonder…
What is their interest in making us lose?
I mean, should I make a small deposit, trade binaries, make some profits, then my next logical move would be to increase my deposit, increase my trading volume, thus making the broker larger profits, its a win-win situation. On the other hand, should I lose, well, pretty soon the broker or my self would close the account, I would lose my small deposit, the broker loses a customer and we all lose.
So, What is the broker’s interest in making us lose?

[busingy]

The counter party to your binary option is the broker… They make money from you losing… And lose money from you winning… They do not want loyal clients, they want people to create an account and then blow it up.

A spot trading broker… Most of the better ones… Are market neutral and make money off the spread.

Good answer. The binary option brokers make money when u lose. They use the money from losers to pay the winners and themselves. And even the winners will see their withdrawal after 10 days, which is effectively two weeks. They are trying to buy time.

[busingy]

What are you taking (interpreting) as the normal market price to be?

Most people misunderstand how financial data works. Different brokers use different data feed sources.

Here is the list sourced from wikipedia.

• Thomas Reuters (29.4% market share)
• Bloomberg (29.2% market share)
• MorningStar.
• CanDeal
• Capital_IQ
• CarryQuote
• Dealogic
• FactSet
• Fidessa
• Interactive Data Corporation
• IRESS
• Markit
• MetaStock
• Moody’s Analytics
• Morningstar,_Inc.
• SIX Financial Information
• SNL Financial
• SunGard
• Standard & Poor’s
• Net Bridge
• Xignite
• Ziligence

So there is no such thing as a normal market price Busingy. Financial data vendors collect price information from all over the world. These sources include stock exchange feeds, brokers, dealer desk and numerous other regulatory agencies, for example the US Securities and Exchange commission.

The vendors then translate this incoming information into a single normalized number and sells this information back into the market place.

We have covered this issue in a complete case study of OptionBit prices, because so many traders just didn’t quite understand it.

Maybe check it out:

<img src=“301 Moved Permanently”/>

Let me answer this guy. Hi ProTrader, let me give you a clear scenario of what OptionBit used to do. We will assume OptionBit was getting prices from “heaven” and then another broker B was getting theirs from Thomsonreuters. Broker B has their EUR/USD opening at 1.23441 and closing at 1.23401, just four pips lower. Let us assume that “heaven” has “their” prices 10 pips below those of Thomsonreuters. Then OptionBit should open at 1.23341 and close at 1.23301. Get it? What I want you to get clearly is that OptionBit would in this case show you that they are closing at same price as Thomsonreuters, casting off any proportional movement expected on the same instrument even if we used different sources for the data.

OptionBit, and I don’t hate them, saw I had raised my account from 100 USD to 7700 USD in one week. So they started hard-marking me. For example, the maximum to invest according to the terms was 999 USD. I was shocked when mine was capped at 600 USD. If they had not done this, I would have risen to something like 15,000 USD in same period. I photographed my trade history and will post it here one of these days.

The trick was simple: I had a strategy that runs for about one week in a month, giving you good returns. But this same strategy would be a disaster the rest of the weeks when markets were trending. My research showed that there was always a ranging week every month. So I deposited 100 and lost it, put in more but lost still. By the time my strategy picked up, I had lost about 500 USD. When I noticed I had picked up, I raised the stakes and kept risking bigger. I made big money, prompting OptionBit to cap my Max Invest at 600 rather than the 999 as agreed and known. They even srapped off the 15 min options and raised to 30 min. Poor guys.

[Arimont]

The counter party to your binary option is the broker… They make money from you losing… And lose money from you winning… They do not want loyal clients, they want people to create an account and then blow it up.

[B]Thats [/B]why there’s no commissions…ok, now I get it…so mostly the game is set for us to lose…unless we use a “good” broker…?

[tommmi88]

hi maybe I should contribute,I can understand people who started with $100 of own and you lose money in any trading this will also happen this is trading there is no gurantee in winning that fact.do you know that there people who make $2000 to $5000 daily do they whine about that they have $50000 to $1 000000 account no of course not because why should they do you think they about should they even bother to talk about how thet are doing.binary option started on 2008 most company started only 2009 before that only bank do this type of investment, give it time the small player out soon because of regulation from may 14 this year just like forex lots of this player will be gone.so just stick to bigger player.as for the time lap between chart and display price because broker from bank broker will not sustain loss or win in huge volume they are just broker .lastly do you think that binary option will be gone, it just the beginning.

[takeru92]

@busingy

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.

Please tell me how you made money on option bit! I am looking to make money online and I need a strategy that works.

[dpaterso]

takeru92,

You obviously missed this post (and I’m 100% sure you have not read this thread from beginning to end):

There are no “good” binary option brokers. All of them make money off your loss…

Regards,

Dale.

[Tansen]

When I first learned about binary options the guy presenting said you can start with as little as 50 bucks and you can risk a ceiling or floor of 50 bucks.

I was like wait what? Doesn’t that mean I have about 2 minimum chances to blow my account out?

To this day they have never sent me any new webinar notifications

[duyk20]

There are no “good” binary option brokers. All of them make money off your loss…

This’s your assumption. Like in Forex, majority of traders lose money, so, it’s better to blame someone else for the loss.

From the look of it, Binary Options sound like gambling, because one predict whether a certain asset is Up or Down, it’s like tossing a coin, but does it require you analysis to analyse whether a Forex pair is going up or down? Is it the same as tossing a coin?

Binary Options actually eliminate a lot of emotional effects on trading, and please don’t tell me that emotion has nothing to do with trading.

A good read on Why Traders Fail

[tommmi88]

Welcome Kong , Account Balance: $ 18678.98

Account Number:

Logout Deposit My Account My Portfolio

08 07 45 GMT time Tuesday23.10.12

Trading Platform

Most Traded Commodities Currencies Indices Stocks Pairs

Binary Options Option Builder One Touch 60 Seconds BinaryMETA

Position ID Asset Strike Price Call/Put Time End Date Expiry Rate Investment Result RETURN

Open Positions Expired Positions One Touch Positions

3456618 GOLD 1728.090 Call 15:53 22/10/12 15:54 22/10/12 1728.103 $100 won $170

3450716 EUR/USD 1.30578 Put 12:46 22/10/12 12:47 22/10/12 1.30569 $500 won $850

3450600 EUR/USD 1.30575 Put 12:43 22/10/12 12:44 22/10/12 1.30560 $250 won $425

3450518 EUR/USD 1.30560 Put 12:40 22/10/12 12:41 22/10/12 1.30570 $100 lost $0

3449919 EUR/USD 1.30649 Call 12:19 22/10/12 12:20 22/10/12 1.30645 $100 lost $0

Total Current Profit/Loss: $0.00

Select the asset you wish to trade.

Click UP if you think the price will rise above the current level. Click DOWN if you expect the price to fall below the current level.

Choose the investment amount you wish to trade with - along with an expiry time of your choice and click APPLY.

Wait for the option to expire.

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English
if you lose $50 and you think you lost the whole world please don,t trade seriously

[camundahl]

Options are legit if you can time the expiries and predict whether to call or put right. I have made some money using Banc de Binary. Now looking at live sessions with a guy that supposedly has a near 85% win rate. Definitely not something to attempt if you can’t even use charting tools, and the good ones will set exipiries and predictions using fundamental analysis as well as technical.

Does anyone have input on predicting the “One-Touch” Options for the weekend? They are tempting… but you would need to be pretty confident of your analysis.

[Anewr]

okay so after browsing this thread a bit I want to ask if there is any “good” binary option brokers out there? Nadex? 24Option? Banc De Binary? I am not in the camp that believes that binaries are scams. That is like saying any thing else one can trade is a “scam”. All one needs is knowledge to trade successfully. Not here to discuss that though. So really, are there any good brokers to trade binaries with? I know that I will have some losses. That is fine. But I do not want one that takes my money for no reason at all I just want a good broker (i.e. brokers that simply present a price and lets me trade to make a profit or loss and the broker gets paid via commission or some sort of payment like that.
Thanks in advance. And like I said, I am not interested in hearing about how much of a “scam” binaries are or that one broker is bad or whatever. Just like anything else out there, I believe one can make money trading binaries using a robust strategy, good money management, and correct emotional attitude and mindset.
Thanks everyone!
Cheers!

[Abey55]

Hi Guys!
I found exactly what I was looking for in this thread (reputable Binary Brokers). THANK YOU!

I only discovered Binary Options 3 weeks ago and fell in love with the process. I studied like crazy and brought my winning ratio up from 50/50 the first week to 60/40 the 2nd week, and then 80/20 this last week. I even had a 100% win ratio yesterday.

But, alas, I kept having to switch brokers (three now) because I realized that ultimately there would be a little swindle at the end (from 30 to 200 pips) to put me out of the money, literally in the last second of expiry… a blip that didn’t show up on any of the charts I was using.

In fact, one of the sites I used today actually showed two WINS at expiry, but then not in my account! And this was a Platform I had found (also) from a forum. The customer svc was great and I even learned a new strategy that SAVED me lots of money on losses. But…:47:

Anyway, I’m not ready to give up. It’s a whole lotta fun improving my knowledge and then seeing it work. My preference is Currencies on 15min platforms… all I need is a reputable broker… one that won’t cheat me in the end.

Again, thanks so much
S
:47: (Newbie - Green as can be!)

Hey i recently found out about binary options and have been doing lots of research. Can u please tell me ur strategy, how u got such a good winning ratio? I would appreciate it thanks

[Abey55]

Hey can u please let me know what ur strategy is?

I like to trade short periods of time. that is why I’ve chosen binary options. Like anything, if you want to get good at it you have to invest a lot of time to master the style of binary options, other wise is better to go to the closest casino and waste your money there with more emotion and people around you, instead o being alone in front of your computer.
if you Analize and learn how to and what indicators would work for you on the activity you chose to deal with, you will be a succes but if you don’t do this you will be disappointed with the results.
Study hard my friends, and adopt a technique that can help you accomplish your dreams.
On the other hand, the platform I use the time xpires at the time indicated and no after. chose wisely before you get in to one read about it on the Internet you’ll see there is a lot info and reviews about these platforms. there are some good ones, of course every body wants to make money, won’t you? remember only 5 % of people in this business will make money, the rest will surrender there money to pay for this 5%. so make sure you become a part of this team.
Good luck, and if can help you, leet me know.