New in the field of binary trading

Trading Discussion Binary Options
1

HI, im a new player in the field of binary trading, and i have some money to invest. I heard of may scam stories, and would like to consult for a reliable website to invest. Thanks advanced

2

[B] Hello Karen,

I am sorry to be cutting you short, but have you read any of the previous BabyPips threads on this topic?

Here are a few recent (and not so recent) ones: [/B]

http://forums.babypips.com/show-me-money-swing-trading/56526-how-make-money-binary-options-trading.html

http://forums.babypips.com/newbie-island/41002-warning-about-binary-options.html

http://forums.babypips.com/newbie-island/68147-forex-binary-options-forecasts.html

http://forums.babypips.com/newbie-island/61492-binary-options-trading-too-good-true.html

http://forums.babypips.com/newbie-island/38522-binary-options-beware.html

http://forums.babypips.com/forex-brokers/59701-best-trusted-binary-trading-brokers.html

3

I would like you to start with Forex trading. That will be a good start.

4

Hi,

There are only few relatively reliable trading companies, i cant number them here fr advertisement regulations, but i suggest you go and consult with real people who has much exeprience in the field cause its pretty risky

5

It is not so much they are a scam, it is more the idea behind them… It is a derivative so derives its value from the underlying asset like a standard option however what makes this one crazy is it is indexed over 100 and simplified to a single bet based on odds created by the market maker who has invested a lot on being on the other side. the best returns have the lowest opportunity to happen and the worst returns have the highest chance of coming through.

Now you decide if you want to trade an instrument like that. You are better off betting on Saturday on the football. Same odds… This business is lucrative for the brokers and educators who never tire of producing strategies for sale and there is no shortage of fresh blood.

Good luck whatever you decide. I personally stick to tried and tested derivatives or the asset itself. That’s why I trade only FX, equities and futures. Don’t even like standard options, don’t even hedge with them.

6

Thank you, Emeraldorc… You are so knowledgeable…

I should like to say that my parents have recently been offered to trade options with their bank…

I checked the proposed contract and it looks like a good investment, based on USD dollars…

It made me think: why am I so insistent on Forex?

Sure, I will make returns, but could there be better returns elsewhere for less effort?

ETFs, Options, etc.

What you were saying over on the volume thread, Emeraldorc, makes a lot of sense: because

of the ‘easy’ leverage, Forex is the obvious choice for many new traders, but it is actually the

hardest asset class to trade, because of the historically lower volatility and an aversion to the

single-mindedness displayed by, say, an equity ‘bull’ or ‘bear’ trend, which can go into years

unperturbed (look at the S&P500: need I say more?).

7

There are a very few brokers that you can trust. Most of the novices loss their money by many bo brokers site .So , choice a good and regulated broker site .

8

In which broker have you join in??
Is most of binary option scammer??

9

I just posted a new thread with a strategy I use with BO and feel comfortable with, but seeing that all the Honorable Members and Contributors are completely against this type of instruments I am having second thoughts about closing it and quit it for good!

I really like the explanation Emeraldorc gives:

“It is not so much they are a scam, it is more the idea behind them… It is a derivative so derives its value from the underlying asset like a standard option however what makes this one crazy is it is indexed over 100 and simplified to a single bet based on odds created by the market maker who has invested a lot on being on the other side. the best returns have the lowest opportunity to happen and the worst returns have the highest chance of coming through.”

I understand what you say about the underlying asset and everything (I have some knowledge in coverage operations with derivatives), although I would like to clarify some doubts, let me explain:

  • I do 5 min trades, using a strategy I previously used while trading forex. This strategy allows me enter the market for a period of time or what you could equally take as close at profit, personally I don’t like holding a trade indefinitely until I get some return.
  • What I like about BO is that I now right from the begining my potential profits and losses, I only need 1 pip movement to win the trade (in my favor of course, otherwise you lose).
  • I study the market and make my trades based on my analysis, which would be the same if I traded forex.

So…could you please tell me what do you mean by “indexed over 100 and simplified to a single bet based on odds created by the market maker”? I understand that perhaps you make reference to one touch options and range options?

Maybe I am missing some important points here and could be the binary’s next top victim! But I believe that the most dangerous factors here are the expiry time (I only trade up/down options) and the possible scams.

Thanks for your help and happy trading!

10

Trading binary options are similar to forex trading, but the only difference here in BO trading is that you predict that either the value of a specified asset will go up or down within a specific time frame. The winning payouts are about 70 - 80 % and if you loose you will get nothing.

Any newbie starts binary options trading may find it more easier than trading forex. All the odds are the same as used in forex, the only limitations is to choose a specific expiry of contract and then predicting on a specific asset value, that can easily be checked using the popularity votes of the other traders.

11

There are several really reliable binary brokers with good platforms and services. For example I can list such most popular brokers and you can check info about them:
24Options review
Opteck review
OXMarkets review
Banc de Binary review

12

My trades usually goes with Optiontrade, as I use their mobile app since few months and I can say them as a good binary broker too powered by hotforex. Have you also noticed their review page on chiefbinary…?

13

What is chiefbinary, a binary options broker review site? You can check review of your current broker at FPA, most broker were reviewed at FPA/

14

Does Optiontrade offer ladder type of trading? What about payout rates, are you satisfied with them?

15

Ladder trading is available in Optiontrade, and so far the payouts seems to be ok.

16

Put & Call is my favourite, ladder looks complicated, does anyone have a deep understand on it?

18

Its not that much complicated as it looks to be. This type of trading help you hedging more against your losses. https://www.optiontrade.com/eu/en/trading-products/ladder.html | Ladder Option Definition | Investopedia