Many FX brokers are also offering binary options. I got a chance to see the following video and would like to receive your opinion on it. I already have an opinion and would like to receive yours. If you are new to the market there are certain things in the video that are incorrect. I am hoping to receive feedback from experienced traders.
Binaries what a waste of time. Returns up to 85%. Marketing. Translation risk return ratio 1:0.85. Not worth getting out of bed for. And as for that little pop up window that says price of instrument has change please try again. Thats called insurance. This is gambling in its purest form. No sir I don’t like it. Never again.
With that said I have heard of Binaries being used as a hedging technique.
They can be used for hedging if you know what you are doing, yes. In which broker did you see a re-quote? The ‘insurance?’ I am having difficulties calling it gambling, perhaps 60 seconds expirations are gambling in a way. DNT options have a similar concept to boundary binary options, no?
24options bro. I’ll stick to trading the markets. They claim this shouldn’t happen but the reality in a fast moving market latency kicks in and the price changes before you have time to submit your bet and it gets rejected. Of course the trap for new players is to still try and get onboard but my experience was by the time you did the price moved the other way. Nothing good to say about 24options and their ment to be an industry “leader”
There is a system that rejects the trade if there has been a certain deviation from the market price at the time of the execution. I am uncertain it was targeting you specifically, just how the system works. If you see the price is 1.2780 and after executing the trade you discover you entered at 1.2775, when you intended to place a put option, would you be satisfied? If you were doing very well, these rejects might be a polite way of asking you to leave. Another option is that too many traders were already holding a trade in the direction you wanted to place and the system blocked you maintain a healthy book balancing, another possibility. The big kick is when you actually try to exit the trade before the expiration, that’s when you’re usually flooded with re-quotes. Anyone experienced it?
My experience was and this was two years ago, if a bet was likely to go your way, it was harder to get on board but if you completely ballz up you analysis and went on the wrong side they had no problems accepting that trade. They have some clever people working for them that’s for certain. I think short term its not worth it but if you where looker longer term the odds might work in your favour. But who wants to wait one month for a return of 0.85%. My bank pays better than that!
I am uncertain it is that sophisticated unless you deposited $300,000 and a special attention was paid to you. 10% a year (0.85% per month as you said) is not a bad ROI. I would bother with short terms as price can be manipulated at the expiration: The Art of Trading Binary Options tell you all about it. I do think it was a misfortune for those trades that didn’t get it filled. Did you try using binary options as a hedge? What expiration do you use?