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Why Binary Forex Options are better than Spot Forex

  • #61
  • Jun 9, 2009 4:36pm Jun 9, 2009 4:36pm
Yeah, I never trade the daily, weekly or monthly options. I like to get in and out of the markets with minimal exposure. It was the same when I was trading traditional FOREX. The less exposure to 'market madness' the better as far as I'm concerned. I like to see what's going on 'now' rather than worrying about what's happening while I'm away from the screen.

Just my preference of course.
  • #62
  • Jun 9, 2009 6:12pm Jun 9, 2009 6:12pm
I make nice trades out of daily binaries when expecting big jumps [over 100 pips on UJ] aronundnew york open, or around 20 pips on UJ an hour befor expiry, when there is some american important speach at that time.

Non farm payroll is highly doyable especially in such a volatile time as now.
My strategy is either open two position around $10 each [IG allows 0.2 contract what makes it 2x$20 risk, or if I'm expecting one direction move I open only one and am not afraid of news spike, even if it's 100 pips.
  • #63
  • Jun 9, 2009 8:27pm Jun 9, 2009 8:27pm
Before coming forex, I was trading exchange traded options on equities. One of the “plays” I was the most comfortable with is called the “married put“. All that means is buy a put option and buy an equal amount of the underling at the same time.

I was a little shocked to discover so few forex brokers offering options. They offer stops instead. All a stop ever did for me was take me out of the market too soon.

It took time, but I eventually found a broker who offered options and forex in the same account. I routinely practice my own married put strategy, but I have merely dabbled in binaries, yet with good results.

I like the limitless possibilities that come from combining options and forex, including binaries. Because a binary will close at either 100 or zero, I believe they offer an excellent method of providing low cost down side protection.

Like the married put, combining a spot position with a binary has great potential during times when you expect low volatility. I believe several places offer options and forex in the same account, I must have tried the demo at three before settling on one.

Everyone has to find what works for them.

I’m looking forward to hearing other’s trade ideas.

siafx
  • #64
  • Jun 10, 2009 2:40pm Jun 10, 2009 2:40pm
Does anyone else have any problems loging into their HedgeStreet Demo Accounts?
I get redirected to Nadex.com but can't login from there with my old Login Details.
  • #65
  • Jun 10, 2009 3:17pm Jun 10, 2009 3:17pm
It probably would be best to just call them. Probably is a problem related to their new platform transition and website.
Binary Options Trader
  • #66
  • Jun 10, 2009 3:46pm Jun 10, 2009 3:46pm
With the new platform you have to sign up again. But you can use the log in info you were using with the first demo acct.
  • #67
  • Jun 10, 2009 4:47pm Jun 10, 2009 4:47pm
Quoting ferndog
With the new platform you have to sign up again. But you can use the log in info you were using with the first demo acct.
Tried everything with and without demo-xxxx infront of it. I'll probably just sign up again. Which is a bit sad because I had a very promising EUR/USD to close above 1.3775 on Friday trade going on since Monday.

Edit: Nice now they have the same plattform as IGMarkets. I hope they combine the best of those two brokers.
Low Cost from HedgeStreet and a good Plattform with Charting and Infos and quick Order Managment.

Only Problem with my new account is that my balance is 0 USD.
  • #68
  • Jun 10, 2009 5:48pm Jun 10, 2009 5:48pm
I had to sign up for the new platform but i just used my same info. Yea it looks like ig. I think they are sister companies. Going to have to get used to the new platform. I kind of like the one i'm using now.
  • #69
  • Jun 10, 2009 8:27pm Jun 10, 2009 8:27pm
Quoting Tjpld
Tried everything with and without demo-xxxx infront of it. I'll probably just sign up again. Which is a bit sad because I had a very promising EUR/USD to close above 1.3775 on Friday trade going on since Monday.

Edit: Nice now they have the same plattform as IGMarkets. I hope they combine the best of those two brokers.
Low Cost from HedgeStreet and a good Plattform with Charting and Infos and quick Order Managment.

Only Problem with my new account is that my balance is 0 USD.
Oh I forgot to mention: IG Markets bought Hedgestreet sometime ago. This is why their platforms are now so similar.
Binary Options Trader
  • #70
  • Jun 11, 2009 6:15pm Jun 11, 2009 6:15pm
They seem to have spread for forex.

They are different from binary forex option?
  • #71
  • Jun 11, 2009 7:50pm Jun 11, 2009 7:50pm
Yoda, I've been trading live forex for years, how would you recommend getting started with binary options? I am reading the PDF file right now, but would you have some other steps to do other than just demoing?

Thank you for this thread.
  • #72
  • Jun 11, 2009 9:05pm Jun 11, 2009 9:05pm
Quoting Dreamliner
Yoda, I've been trading live forex for years, how would you recommend getting started with binary options? I am reading the PDF file right now, but would you have some other steps to do other than just demoing?

Thank you for this thread.
The transition from Spot Forex to Binaries isn't that hard...although it takes a few weeks to adjust to the swing of Binaries. The rules of Spot Forex apply in almost every way: Use your Spot Forex trading system with Binaries, but instead of take profits, you're dealing with strike prices. And of course, demo trade for a while, then start out with a small bit of money and then put in your big money.
Binary Options Trader
  • #73
  • Jun 11, 2009 9:41pm Jun 11, 2009 9:41pm
Quoting Pip Smoker
Yeah, I never trade the daily, weekly or monthly options. I like to get in and out of the markets with minimal exposure. It was the same when I was trading traditional FOREX. The less exposure to 'market madness' the better as far as I'm concerned. I like to see what's going on 'now' rather than worrying about what's happening while I'm away from the screen.

Just my preference of course.

I was just curious…I'm a little confused by your approach here. Market exposure has more to do with how much you invest/risk on a trade, as opposed to how long you are in a trade for. For example, you could try to scalp a binary contract by selling one at cost of $80, in the hopes of quickly closing out with a $5 profit. Even if you’re quickly in and out of your trade, you’re still risking $80 just to gain $5. In contrast, someone could buy a monthly one touch binary for $5 and they’re still not risking nearly as much as you are, even though they're going to be in their trade for weeks.

Then again..I kind of know what you are saying. If you're risking $5 and I'm risking $5, but your trade time is shorter than mines then I do have more "risk" in my trade. However, with binaries, the shorter the time frame you are trying to trade with, the more the binary is going to cost you.
Binary Options Trader
  • #74
  • Jun 11, 2009 9:50pm Jun 11, 2009 9:50pm
Quoting Pip Smoker
Ok, confession time. Seeings as someone has already raised their head above the parapet I might as well join in!

I've been fixed odds trading for a while now but have chosen not to say anything because of the inevitable ridicule and possible accusations of 'marketing' and I really didn't want to be seen as trying to wind people up who have spent years learning their craft.

To be honest I am really surprised about how few FOREX trders seem to be aware of the fixed odds market.

I spent 2 years trading 'traditional' FOREX but then I stumbled...
Can I ask which broker you're with that supports 'flash bets'?

Cheers.
  • #75
  • Jun 12, 2009 4:15am Jun 12, 2009 4:15am
Quoting Yoda_Glenn
I was just curious…I'm a little confused by your approach here....
Hi Yoda,

Yes I see what you're saying, when it comes to binary trading you're more protected from market swings as you're not going to lose more than your initial stake anyway.

I guess what I'm saying is that I like to know immediately whether my trade is a winner of a loser.

What I don't relish is the thought of leaving a trade running for a week or a month (or even a day) and the anguish of watching the market fluctuations in that time.

I feel that if you're only going to risk small amounts on each trade (such as I do) then waiting a week for your result is a waste of time and if you're going to place a more substantial sum on a trade, the waiting is going to cause (me) much anguish.

I like to place my trade and know the end result in the next few minutes so I can adjust my money management and trading strategy according to the current conditions.

This is the method that suits my personality but it has its own pit-falls because you have to judge when it's safe to trade and when it's best to stay out.

As a flash trader (and a 'scalper' before that) I came to realise that some day's you can't even place a trade because the markets just aren't moving properly, but on other days opportunities can come along at a frantic rate.

You have to be disciplined and not look for reasons to enter when you've been sat at you screen for a number of hours on a quiet day, which can be really boring. Patience is the watch word here I guess.

It's better to be bored than broke. . .

So basically, to sum up, it's really about your personality type. There is no right or wrong way to do it. You've just got to concentrate on your own method and what feels comfortable for you and understand your method and chosen time frame thoroughly.

I hope that makes sense?
  • #76
  • Jun 12, 2009 4:33am Jun 12, 2009 4:33am
Quoting pierre23
Can I ask which broker you're with that supports 'flash bets'?

Cheers.
Yes certainly, if I'm allowed to mention it. I trade with a site called Bet On Markets.com Look them up on Google. They appear to be the most widely used and longest established fixed odds broker.

However, there are a number of fixed odds brokers who allow flash bets. Again, Google is your friend.
  • #77
  • Jun 12, 2009 2:14pm Jun 12, 2009 2:14pm
Quoting Pip Smoker
Yes certainly, if I'm allowed to mention it. I trade with a site called Bet On Markets.com Look them up on Google. They appear to be the most widely used and longest established fixed odds broker.

However, there are a number of fixed odds brokers who allow flash bets. Again, Google is your friend.
I was trying to remember this broker betonmarkets because i came across it some time ago & but i forgot about it & that's good you mentioned it. These guys offer all sorts of stuff. If you think the price on e/u is going up in the next 5 min you can get in & get out right away. So i see what you are talking about. By the way i made a small profit today. But it was a wild day for me after losing on u/j a few hours ago by one lousy tick. I bought u/j to close above 98.19 & when i checked the official results it finished at 98.18. Not a good feeling. I would rather lose by 100 pips! lol
  • #78
  • Jun 12, 2009 3:01pm Jun 12, 2009 3:01pm
By the way, every broker mentioned here, except for IG and Hedgestreet, does not allow US traders.
  • #79
  • Jun 12, 2009 7:51pm Jun 12, 2009 7:51pm
ok all you binary traders!

Let's have it.

You traded a few contracts in your demo accounts.

How did you do?

Be honest!
  • #80
  • Jun 13, 2009 5:41pm Jun 13, 2009 5:41pm
Quite well actually. I mostly bet on the Germany 30 closing up or down.
Nothing fancy. Having completed the learning curve with spot forex I hope it won't take me as long to get profitable as it did in Spot FX. I try to avoid some mistakes I did when I tried to teach myself trading Forex.

@Dreamliner

Yes I'm a bit disappointed that Nadex (former Hedgestreet?) doesn't allow non-US citizens. So I'll probably go with IG Markets sooner or later.
What I like best is that i can get decent chartig of the underlying symbols of my binars. With HedgStreet I had to search for good charts all the time just to do my analysis.
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