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Why Binary Forex Options are better than Spot Forex

  • #281
  • Jun 26, 2009 2:32pm Jun 26, 2009 2:32pm
thnks ferndog!
FF = Forex Faggots
  • #282
  • Jun 26, 2009 4:52pm Jun 26, 2009 4:52pm
I've nearly doubled the account a second time now, all is well so far.
  • #283
  • Jun 26, 2009 7:31pm Jun 26, 2009 7:31pm
Quoting ferndog
$100 min

Anyone know if the Oanda box options worth trading?
I still trade at Oanda from time to time, but I find myself moving more and more to binary options. Those things are powerful!

As far as Oanda Box Options, they change the pay out all the time.

You may buy a hit box for $100 and it pays $100.23. Or you may buy a miss box a thousand pips high right in front of the price 15 minutes out, impossible to miss! And it would pay 101.25.

Oanda was way too inconsistent for me.
  • #284
  • Jun 26, 2009 7:34pm Jun 26, 2009 7:34pm
Quoting Dreamliner
I've nearly doubled the account a second time now, all is well so far.
Awesome, man! Keep it up.

I had aprox. tripled over about a five week period, but kept pushing until I got knocked down to slightly better than even. Now I'm working on a disciplined trading plan. I need boundaries!!
  • #285
  • Jun 26, 2009 8:20pm Jun 26, 2009 8:20pm
oanda's box for short-term must hit and must not hit cases
are having less ROI than placing a spot forex position.

this is my impression, so I haven't figured out how to use it for our advantage.

I guess that's due to oanda use machine to calc probability and it don't want to lose, so box price is unreasonably high....
where in future contract case, people have different opinions so contract price could be reasonable at some times.

Quoting siafx
I still trade at Oanda from time to time, but I find myself moving more and more to binary options. Those things are powerful!

As far as Oanda Box Options, they change the pay out all the time.

You may buy a hit box for $100 and it pays $100.23. Or you may buy a miss box a thousand pips high right in front of the price 15 minutes out, impossible to miss! And it would pay 101.25.

Oanda was way too inconsistent for me.
  • #286
  • Jun 26, 2009 8:49pm Jun 26, 2009 8:49pm
Quoting billye
oanda's box for short-term must hit and must not hit cases
are having less ROI than placing a spot forex position.

this is my impression, so I haven't figured out how to use it for our advantage.

I guess that's due to oanda use machine to calc probability and it don't want to lose, so box price is unreasonably high....
where in future contract case, people have different opinions so contract price could be reasonable at some times.
I also trade with Oanda spot & i saw these box options. Might give them a try. I think i can tell if a pair is not going to hit a box so then why not trade it.
  • #287
  • Jun 26, 2009 8:54pm Jun 26, 2009 8:54pm
Quoting siafx
Awesome, man! Keep it up.

I had aprox. tripled over about a five week period, but kept pushing until I got knocked down to slightly better than even. Now I'm working on a disciplined trading plan. I need boundaries!!
I hear you! Share your plan when you can, let's keep it up!
  • #288
  • Jun 26, 2009 9:00pm Jun 26, 2009 9:00pm
Quoting ferndog
I also trade with Oanda spot & i saw these box options. Might give them a try. I think i can tell if a pair is not going to hit a box so then why not trade it.
the formula is
a. if you know it will hit and it hits
do a long/short spot position you can also profit

b. if you know it will hit and it did not hit
do a box trading will lose all 100$ (if the box is short term like ~ hours)
but do a spot position you can hold on to it even if by the time it doesn't hit.... maybe after one week it can go there and at least there is a chance to exit at b/e.

so after I tried, I had not found a profit model to trade oanda box, you can try in fxgame 1st...
  • #289
  • Jun 26, 2009 9:05pm Jun 26, 2009 9:05pm
dl:
are you still trading correlations or moved to binary? which one is more attractive?

Quoting Dreamliner
I hear you! Share your plan when you can, let's keep it up!
  • #290
  • Jun 26, 2009 9:07pm Jun 26, 2009 9:07pm
Quoting billye
the formula is
a. if you know it will hit and it hits
do a long/short spot position you can also profit

b. if you know it will hit and it did not hit
do a box trading will lose all 100$ (if the box is short term like ~ hours)
but do a spot position you can hold on to it even if by the time it doesn't hit.... maybe after one week it can go there and at least there is a chance to exit at b/e.

so after I tried, I had not found a profit model to trade oanda box, you can try in fxgame 1st...
I hear you. I guess i can play around with it on the fxgame.
  • #291
  • Jun 26, 2009 9:25pm Jun 26, 2009 9:25pm
Quoting billye
dl:
are you still trading correlations or moved to binary? which one is more attractive?
I still trade correlations; had 3 successful correlation trades today before lunch. I also trade these binaries.

It's hard to say which is more attractive. It's hard to be doubling your account with binaries every 10 days or so, and yet I will not be trading this way any more once I take my first loss. I've had about 30 successful trades but one loss will take the whole account. Of course I've already doubled almost twice so I won't be upset.

Correlations are great trades, as long as they correlate .
  • #292
  • Jun 29, 2009 7:10am Jun 29, 2009 7:10am
Quoting giraia_br
1:45 risk reward?

i oppened a "EURUSD to close above 4140" for 2.5. And if a win i will win 100?

looks good, no?
Depends on what kind of a trader you are. You have a 2.5% chance of winning, time is against you, and the market must move way past its daily average, against the immediate trend, for you to win this trade. Supposedly, if you take this trade 97.5 times, you will win once.

But some people like this style of trading. I wouldn't trade this way, but to each his own.
  • #293
  • Jun 29, 2009 7:17am Jun 29, 2009 7:17am
Quoting Dreamliner
Depends on what kind of a trader you are. You have a 2.5% chance of winning, time is against you, and the market must move way past its daily average, against the immediate trend, for you to win this trade. Supposedly, if you take this trade 97.5 times, you will win once.

But some people like this style of trading. I wouldn't trade this way, but to each his own.
it was a sell!!! So i suppose i am betting against price close above 4140.

it is correct?

thanks for reply.
  • #294
  • Jun 29, 2009 7:30am Jun 29, 2009 7:30am
Quoting giraia_br
it was a sell!!! So i suppose i am betting against price close above 4140.

it is correct?

thanks for reply.
Oh, I see. Yes, you're right, I thought you bought.
  • #295
  • Jun 29, 2009 7:38am Jun 29, 2009 7:38am
looks a excellent trade.

this time of day is the best to trade with binaries? Or early in London was better?
  • #296
  • Jun 29, 2009 7:50am Jun 29, 2009 7:50am
Quoting giraia_br
looks a excellent trade.

this time of day is the best to trade with binaries? Or early in London was better?
I like just after the start of the US session, or after 10:00 AM Eastern time (after the news). That way the market has already determined its direction for the day, usually already made its daily average, and all we do is sit out the time remaining and take our money.
  • #297
  • Jun 29, 2009 11:12am Jun 29, 2009 11:12am
when i made the first post, price to buy the "eurusd close above 1.4140" was around 2.5.

but the price to open a sell was 2.5 too or something like that.

so, if price close above 1.4140 i receive 100 for the winner and my loss will be 2.5?

and if price close below 1.4140 i receive 100 for the "eurusd close above 1.4140" and my buy will have a loss of 2.5? Win win situatation?

what is wrong with this? If it is a arbitrage, of course it will die posting this on the thread.
  • #298
  • Jun 29, 2009 11:17am Jun 29, 2009 11:17am
To buy closing above 4140 if it was 2.5 you are risking 2.5 to make 100. This would be a loss today.

If the price to open a sell was 2.5, you risk 97.5 to make 2.5. This would be a profit today.

If you are selling, you make the difference from what you sold at (in your case 2.5) down to zero. So the difference between what you sold at, and zero.

If you are buying, you make the difference between what you buy at (in your case 97.5) up to 100.

Make sense?

Quoting giraia_br
when i made the first post, price to buy the "eurusd close above 1.4140" was around 2.5.

but the price to open a sell was 2.5 too or something like that.

so, if price close above 1.4140 i receive 100 for the winner and my loss will be 2.5?

and if price close below 1.4140 i receive 100 for the "eurusd close above 1.4140" and my buy will have a loss of 2.5? Win win situatation?

what is wrong with this? If it is a arbitrage, of course it will die posting this on the thread.
  • #299
  • Jun 29, 2009 11:37am Jun 29, 2009 11:37am
Not a big fan of Mondays but needed to refine my strategies.

The 'to close above' trades were simple no-brainers with decent lot sizes simply to keep money going into the pot.

The touch trades are more speculative and do rely on the trend holding good. Today it did and all three touches won. The EUR/USD to touch 14100 was taken @ 51.5 around 11:30 am UK so nice profit on that one.

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  • #300
  • Jun 29, 2009 12:08pm Jun 29, 2009 12:08pm
just curious...
what is risk/reward of 1 touch contracts?

do you make more or lose more if do a long and t/p if it touches?

or is risk divided by reward lower in 1 touch VS in spot?

Quoting PeterFM
Not a big fan of Mondays but needed to refine my strategies.

The 'to close above' trades were simple no-brainers with decent lot sizes simply to keep money going into the pot.

The touch trades are more speculative and do rely on the trend holding good. Today it did and all three touches won. The EUR/USD to touch 14100 was taken @ 51.5 around 11:30 am UK so nice profit on that one.

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