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Why Binary Forex Options are better than Spot Forex

  • #201
  • Jun 19, 2009 6:10pm Jun 19, 2009 6:10pm
Quoting siafx
I hope you don't blow up your account! With the way the economy has been, you may need it for retirement.
Good one!

My account hasn't doubled yet. I began with $250.00 and I closed out today at $458.53. I assume on Monday it will be doubled (or entirely wiped out). Almost there.

http://www.forexfactory.com/images/buttons/quote.gif

  • #202
  • Jun 19, 2009 6:16pm Jun 19, 2009 6:16pm
I have to admit that I had tripled my money on binaries, but that little move yesterday afternoon on Eur/Usd hurt me good. I still have more that I started with at least, but my rump is still sore!
  • #203
  • Jun 19, 2009 6:18pm Jun 19, 2009 6:18pm
I was just thinking when buying at 80 you would have to buy 5 contracts & risk $400 to make $100. Oh man! To make $100. But if you can hit it to quote Christian Bale's tirade "good for you"
  • #204
  • Jun 19, 2009 6:18pm Jun 19, 2009 6:18pm
Quoting siafx
I have to admit that I had tripled my money on binaries, but that little move yesterday afternoon on Eur/Usd hurt me good. I still have more that I started with at least, but my rump is still sore!
Ouch! Sorry to hear that. Were you on a ladder or one-touch? Did you take an in-the-money trade or out of the money?
  • #205
  • Jun 19, 2009 6:21pm Jun 19, 2009 6:21pm
Quoting ferndog
I was just thinking when buying at 80 you would have to buy 5 contracts & risk $400 to make $100. Oh man! To make $100. But if you can hit it to quote Christian Bale's tirade "good for you"
Yeah, that's pretty much what I hate about it! I enjoy being profitable with every trade, I enjoy somewhat of the "security" knowing I can be right or wrong and still make money. It's just that huge drop in the account that would come when REALLY wrong that is troublesome.
  • #206
  • Edited Jun 20, 2009 7:17am Jun 19, 2009 9:51pm | Edited Jun 20, 2009 7:17am
Quoting Dreamliner
Ouch! Sorry to hear that. Were you on a ladder or one-touch? Did you take an in-the-money trade or out of the money?
I bought the Eur/Usd TBA 1.3900.

I closed it for a big loss, but I did not need to because it paid by 1 pip.

Usually, if the price hits my strike, I close it.

When I bought the thing, Eur/Usd was steadily moving up and was about 90 pips away with about 4 hours to go, trying for about 12 pips.

It went down about 100 pips, I closed it and took the opposite side for about 20 pip gain but a lot less pip value.

What did I learn? Do not Martingale. It will eventually wipe you out.
  • #207
  • Jun 20, 2009 3:36am Jun 20, 2009 3:36am
Quoting Dreamliner
I was thinking I'd double first and then withdraw, which would mean one more trading day.

How are you doing?

I blew it but I kind of expected this to happen. I was
experimenting alot. (Buying huge amounts of contracts at 10 just 4 fun)
Would have made me 140.000 Euro's though ^^.
  • #208
  • Jun 20, 2009 7:07am Jun 20, 2009 7:07am
Quoting Tjpld
I blew it but I kind of expected this to happen. I was
experimenting alot. (Buying huge amounts of contracts at 10 just 4 fun)
Would have made me 140.000 Euro's though ^^.
If you're going to buy huge amounts of contracts, do it at 95 or above, with little time to close.
  • #209
  • Jun 20, 2009 7:48am Jun 20, 2009 7:48am
Quoting Tjpld
I blew it but I kind of expected this to happen. I was
experimenting alot. (Buying huge amounts of contracts at 10 just 4 fun)
Would have made me 140.000 Euro's though ^^.
Now we come to the topic of money management and how to survive a loss or string of losses. We know money can be made trading binaries, big money. The real questions is how do we keep it? My observation is this:

Determine the true number of losers vs. winners that my style of trading produces over time.

Trade with a fixed amount of risk.

When my account value is at a level that my largest amount of successive losses will not force me to change my trade size, then increase the amount of risk.

Imagine the possibilities if your trade plan and your account size allow you to trade at 50 to 100 dollars a point!
  • #210
  • Edited 4:30pm Jun 20, 2009 8:10am | Edited 4:30pm
Quoting Dreamliner
If you're going to buy huge amounts of contracts, do it at 95 or above, with little time to close.
Yes that's what I was most sucessful with.
Just wanted to try things out on demo.

Just setup my next demo. Will follow a very simple stratergy that I've come up with.
Open WallSt. Daily Chart. -> apply Average True Range (14) -> Trade Tunnel Binaries based on that.

If you look at the Wall Street to stay in Range +/- 170 Binaries Quick Chart you can see there is some
money on the tabel. Current ATR is at 150 so 170 should not be a problem.
  • #211
  • Jun 20, 2009 8:54pm Jun 20, 2009 8:54pm
Can someone on this thread help me out with something? I’ve been trading Binary at IG. Last week I took a look at nadex and it says that they have forex binary options that expire every two hours! Am I reading that right? If that’s the case, has anyone here tried it? What do you think?

Thanks much!!
  • #212
  • Jun 20, 2009 9:05pm Jun 20, 2009 9:05pm
Quoting siafx
Can someone on this thread help me out with something? I’ve been trading Binary at IG. Last week I took a look at nadex and it says that they have forex binary options that expire every two hours! Am I reading that right? If that’s the case, has anyone here tried it? What do you think?

Thanks much!!
That's probably right, they are then creating liquidity in the market where none inherently exists. If this is anything like EZTrader it is a very dangerous way to trade because you must pick the direction of the market, either up or down. The house edge is the spread, so it is not a true 1-1 risk reward.

So that is true gambling, in my opinion. Possibly it's not like EZTrader, but if it is I'd run from it.

Let us know how those 2 hour options are traded. If they have any like the daily ladders at IG I'd be interested.
  • #213
  • Jun 20, 2009 9:31pm Jun 20, 2009 9:31pm
Quoting Dreamliner
That's probably right, they are then creating liquidity in the market where none inherently exists. If this is anything like EZTrader it is a very dangerous way to trade because you must pick the direction of the market, either up or down. The house edge is the spread, so it is not a true 1-1 risk reward.

So that is true gambling, in my opinion. Possibly it's not like EZTrader, but if it is I'd run from it.

Let us know how those 2 hour options are traded. If they have any like the daily ladders at IG I'd be interested.
It looks like they have two hour, daily, and weekly. I will most likely try them in the demo.

Have you tried EZtrader? I read a little about them but I don't know much. Do you like them? I think they're out of Eastern Europe somewhere?
  • #214
  • Jun 20, 2009 9:50pm Jun 20, 2009 9:50pm
Video on binary options:

http://www.dailymotion.com/video/x2l...treet_business
  • #215
  • Jun 20, 2009 9:50pm Jun 20, 2009 9:50pm
Quoting siafx
It looks like they have two hour, daily, and weekly. I will most likely try them in the demo.

Have you tried EZtrader? I read a little about them but I don't know much. Do you like them? I think they're out of Eastern Europe somewhere?
Yes, I tried them on demo, horrible experience, unless you can tell which way the market is going in advance.
  • #216
  • Jun 20, 2009 10:59pm Jun 20, 2009 10:59pm
Quoting siafx
Can someone on this thread help me out with something? I’ve been trading Binary at IG. Last week I took a look at nadex and it says that they have forex binary options that expire every two hours! Am I reading that right? If that’s the case, has anyone here tried it? What do you think?

Thanks much!!
Yeah I tried it on demo. Its actually an hourly binary that lets you trade the current hour and the following hour. So lets say the current hour was 9 am, they would have a 10 am expiry and a 11 am expiry. When one expires the next hour appears and so on until I believe 3 eastern. Seems more risky, but worth practising anyway. Let me just say this though, I am 0 for 5 on the hourly and 3 for 4 on the daily, so maybe its just me, or maybe its just that much harder to predict. However, I'm still playing around and trying to figure out different strategies. Open up a demo account and try it for yourself and let us know what you think.
  • #217
  • Jun 20, 2009 11:28pm Jun 20, 2009 11:28pm
I trade at hedgestreet & every hour they have contracts on forex majors, gold, silver, oil & some other ones. They start at 10am est & end at 3pm est. You have to pick your spots. Keep an eye on the charts. Look for opportunities. There are good RR trades with these type of contracts. When i started i wanted to trade every hour. I stopped that crap. Much less stress believe me. My goal is to hit at least a couple of trades & hopefully have good RR & then be done for the day. I've been able to get my money back after a loss & then some. So there are opportunities out there. You gotta get a feel of price action on lower time frames. Know how candles form.
  • #218
  • Jun 21, 2009 7:27am Jun 21, 2009 7:27am
Quoting Pip Chaser
Video on binary options:

http://www.dailymotion.com/video/x2l...treet_business
Thanks for the video. It's good to note one important thing about Binaries:

You're trading against other traders and not against your broker, like Spot Forex.



On another note, does anyone know if the IG Market Daily One Touch's are more expensive to trade than the regular binaries?
Binary Options Trader
  • #219
  • Jun 21, 2009 9:12am Jun 21, 2009 9:12am
Quoting Pip Chaser
Video on binary options:

http://www.dailymotion.com/video/x2l...treet_business
Interesting video. Also what they say about regular calls & puts compared to binary contracts is interesting because Najarian is an seasoned option trader & they are basically saying binary can benefit you more than regular option trading.
  • #220
  • Jun 21, 2009 10:30am Jun 21, 2009 10:30am
CBOE offers binary options on the S&P:

http://www.cboe.com/products/indexopts/bsz_spec.aspx
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