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Why Binary Forex Options are better than Spot Forex

  • #121
  • Jun 16, 2009 1:18pm Jun 16, 2009 1:18pm
Yes, I think my mistake was in looking at the dollar figures on the left. I was mistaken to think that buying cost 100.00 and would make 8.00. Rather it is buying costs 100.00, to make 100.00. and selling cost 8.00 to make 100.00.

That is why in my previous post I asked what those dollar amounts were for; I ended up calling IG and asking what they were for and found out I had been mistaken.

Thank you.

Quoting Tjpld
What price was 100? Bid or Ask?
What did it say as open price in your Positions Summary?

I just did that. Paid 100 Dollars for them and will get 100 if they end in the money. Should be practically impossible to make a profit on this.
The current price will go to 100 and my P/L will be 0 USD. Unfortunately you can't buy at 0 on the otherhand.

http://img141.imageshack.us/img141/4760/ladder.png
  • #122
  • Jun 16, 2009 2:29pm Jun 16, 2009 2:29pm
I noticed that on the IG platform, demo is much different than live. I was demoing until yesterday and at roughly 15 minutes before close there were lots of options to choose from all between 80-90. Today on the live, there were only a few to choose from, and the best I could find was 97.5. So I risked 100 to make 2.5 and won. Increased m account size my 2.5%.

Obviously not a good long term strategy, as just one loss will wipe out all wins. Not sure what to do now, maybe I'll play it until I get plus 10% in the account and then close out the account.
  • #123
  • Jun 16, 2009 2:40pm Jun 16, 2009 2:40pm
15 minutes before expiration of the option?

How far is it in the money to get that price? If deep enough, not a bad bet.

You are risking 97.5 not 100 to make 2.5
  • #124
  • Jun 16, 2009 2:43pm Jun 16, 2009 2:43pm
Quoting MoreYummy
15 minutes before expiration of the option?

How far is it in the money to get that price? If deep enough, not a bad bet.

You are risking 97.5 not 100 to make 2.5
It was only in the money by about 15 pips. In 15 minutes that 15 pips could change. It's not a comfortable bet.

Yes, I said I risked 97.5 to make 2.5, thanks for the clarification.

On the demo, I traded some that were 100 pips in the money that were around 80-90. Today it was only about 15 pips in the money at 97.5. Not nearly as good.
  • #125
  • Jun 16, 2009 3:20pm Jun 16, 2009 3:20pm
Wow when did you go live?
Aren't you a bit quick to start going live with a completely new
asset class?
  • #126
  • Jun 16, 2009 3:22pm Jun 16, 2009 3:22pm
Quoting Tjpld
Wow when did you go live?
Aren't you a bit quick to start going live with a completely new
asset class?
I always go live on everything, just use tiny account size. The reason for this is because, as I discovered today, demo and live trading are much different. It would have been useless for me to continue demo trading with IG markets as the demo is so very much different than live. Now I have an understanding of how the real market works, and it is totally different than demo.
  • #127
  • Jun 16, 2009 3:26pm Jun 16, 2009 3:26pm
ugly to see it tick against you with those position sizes ^^ DEMO

not really sure what to think about this kind of options yet

if the option ends in the money, does the value automatically rise to 100?
Attached Image (click to enlarge)
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  • #128
  • Jun 16, 2009 3:27pm Jun 16, 2009 3:27pm
Good to know. I'm just surprised that you managed to open a functional
live account that quickly. What is their min. deposit?
  • #129
  • Jun 16, 2009 3:29pm Jun 16, 2009 3:29pm
Quoting Dr.Geppynius
ugly to see it tick against you with those position sizes ^^ DEMO

not really sure what to think about this kind of options yet

if the option ends in the money, does the value automatically rise to 100?
If it closes in the money it will go to 100 immediately, yes.

Be careful with demo trading with IG, it is much different than live.
  • #130
  • Jun 16, 2009 3:31pm Jun 16, 2009 3:31pm
Quoting Tjpld
Good to know. I'm just surprised that you managed to open a functional
live account that quickly. What is their min. deposit?
Extremely easy to open an account, 100.00 minimum. I only trade live, with everything, just tiny account sizes, just for this reason.
  • #131
  • Jun 16, 2009 3:32pm Jun 16, 2009 3:32pm
Quoting Dreamliner
If it closes in the money it will go to 100 immediately, yes.

Be careful with demo trading with IG, it is much different than live.
yes, think so. demo: moon, live: earth
but it always is nice to see how good liquidity on an insitutional level might feel...just trade demo.

i have just opened the account this afternoon at igmarkets...live also. but i miss the fx pairs- i only see eu&gu with my demo login.
  • #132
  • Jun 16, 2009 3:34pm Jun 16, 2009 3:34pm
I went live already with a small amount of money. I've done ok. I tend to overtrade. Like last week i had made some profit & then there i go & gave some of it back. But it's hard because you 2nd guess yourself when you don't take a trade & then you see that trade turn into a winner but you were on the sidelines. And then you think wow that should be my profit.
  • #133
  • Jun 16, 2009 3:35pm Jun 16, 2009 3:35pm
Quoting ferndog
I went live already with a small amount of money. I've done ok. I tend to overtrade. Like last week i had made some profit & then there i go & gave some of it back. But it's hard because you 2nd guess yourself when you don't take a trade & then you see that trade turn into a winner but you were on the sidelines. And then you think wow that should be my profit.
What is your trading method?
  • #134
  • Jun 16, 2009 3:38pm Jun 16, 2009 3:38pm
Quoting ferndog
I went live already with a small amount of money. I've done ok. I tend to overtrade. Like last week i had made some profit & then there i go & gave some of it back. But it's hard because you 2nd guess yourself when you don't take a trade & then you see that trade turn into a winner but you were on the sidelines. And then you think wow that should be my profit.
that's where psychology & mindset comes into play. trading is at least 80% psychology. set a chimp in front of the pc with a proven 60% system and he will make you money and exchange it for bananas.
if you have a system trade EVERY potential good signal in the right spot, limit risk to 1% and then leave the pc to let the trad either hit sl (1%) or run into green mans land. it's a curse...second guessing and seeing the good trades sitting sidelines...so one comes to the other. it's a vicious circle.
  • #135
  • Jun 16, 2009 3:40pm Jun 16, 2009 3:40pm
Quoting Dr.Geppynius
that's where psychology & mindset comes into play. trading is at least 80% psychology. set a chimp in front of the pc with a proven 60% system and he will make you money and exchange it for bananas.
if you have a system trade EVERY potential signal, limit risk to 1% and then leave the pc to let the trad eeither hit sl (1%) or run into green mans land.
Wish we could figure out something like that with this thread, with these ladder options on IG. I'm sure there is a way, I'm just not smart enough to do it. Going to eat a bannana now...
  • #136
  • Jun 16, 2009 3:40pm Jun 16, 2009 3:40pm
With binary options it's hard to formulate a system with clear rules.
If -> then -> else

Still highly discretionary.
  • #137
  • Jun 16, 2009 3:48pm Jun 16, 2009 3:48pm
Quoting Dreamliner
What is your trading method?
I look for good S&R. Example yesterday the daily price for e/u went down. So i looked for short trades. If it's an up day look for long trades. Also when you see a pair go down 200 or more pips for the day then there is a good chance it might not go down anymore unless there is some bad news. Keep an eye on how high or low you think a pair is going to go.
  • #138
  • Jun 16, 2009 3:50pm Jun 16, 2009 3:50pm
Quoting Dr.Geppynius
that's where psychology & mindset comes into play. trading is at least 80% psychology. set a chimp in front of the pc with a proven 60% system and he will make you money and exchange it for bananas.
if you have a system trade EVERY potential good signal in the right spot, limit risk to 1% and then leave the pc to let the trad either hit sl (1%) or run into green mans land. it's a curse...second guessing and seeing the good trades sitting sidelines...so one comes to the other. it's a vicious circle.
You are so right about it being a vicious circle. If i can control my mindset i know i would be better off.
  • #139
  • Jun 16, 2009 3:53pm Jun 16, 2009 3:53pm
Inserted Video


LOL just to give you guys a quick laugh.
Just stumbled upon this on Youtube.
What a freaking loser.
  • #140
  • Jun 16, 2009 3:53pm Jun 16, 2009 3:53pm
I just took a live trade, EUR/USD > than 1.3690 which is 150 pips in the money right now, but we have 22 hours to go. The pairs average daily range is 110, so it should be fine. Problem is I took it at 87.9 so I'm risking 87.9 to make 12.1. Doesn't seem like a good long term plan.
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