Why Binary Forex Options are better than Spot Forex | Page 19 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Nadex trading binary options, you better be losing money on that 3 replies

Multi Time Frame Analysis for Spot and Binary Options 457 replies

Rekon Xs and Market Scanner for Spot and Binary Options 442 replies

Spot Forex vs CFD Forex: Are we really trading Spot? 11 replies

show me one advantage of binary options over spot forex 16 replies

Attachments: Why Binary Forex Options are better than Spot Forex
Exit Attachments

Why Binary Forex Options are better than Spot Forex

  • #361
  • Jul 7, 2009 6:26pm Jul 7, 2009 6:26pm
Quoting Dreamliner
That is the exact method I have started using just last Friday. What I was doing before that was entering right at the open of the next day, when the ladders were in the 80's, but that was very risky. Now I'm doing as you said above, I enter between 8:00-10:00 EST (depending on news for the day) with the low risk ladder and make about 5-10 percent per day.
Dreamliner:

Do you enter at around 40 or 50 for buy? If the market changes direction, what is your risk?
  • #362
  • Jul 7, 2009 9:53pm Jul 7, 2009 9:53pm
Quoting saunga2nd3
Dreamliner:

Do you enter at around 40 or 50 for buy? If the market changes direction, what is your risk?
No, I enter now at around 95 for a buy, and around 5 for a sell. My risk is the entire amount, all of it.

As I've mentioned several times, this is not a long term trading strategy for me, because there will come a time when I do indeed lose, and it will all be gone. But since I've taken all my initial funds out, plus that which I've doubled once, I have nothing to lose.

So I will ride this as long as possible.
  • #363
  • Jul 7, 2009 11:00pm Jul 7, 2009 11:00pm
Quoting Dreamliner
No, I enter now at around 95 for a buy, and around 5 for a sell. My risk is the entire amount, all of it.

As I've mentioned several times, this is not a long term trading strategy for me, because there will come a time when I do indeed lose, and it will all be gone. But since I've taken all my initial funds out, plus that which I've doubled once, I have nothing to lose.

So I will ride this as long as possible.
Sorry man. Not to beat a dead horse but you mentioned a low risk ladder and I got confused.

Thanks
  • #364
  • Jul 8, 2009 3:04am Jul 8, 2009 3:04am
Quoting Dreamliner
Yes, I'm making so much money with them that I decided to ask. It is 10 contracts. But you can trade more just by making another trade, or by calling them.
Do you know how igmarkets earn money with binaries?
If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #365
  • Jul 8, 2009 8:03am Jul 8, 2009 8:03am
Quoting Gambler180
Do you know how igmarkets earn money with binaries?
In other words I would like to know if they will let me continue to earn 20 % every week (that's more than 3 billion in 100 weeks) or is that not in their interest. Do they lose money when I win? Is it just bookmaking they are doing?
If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #366
  • Edited 8:07am Jul 8, 2009 8:07am | Edited 8:07am
Quoting Gambler180
In other words I would like to know if they will let me continue to earn 20 % every week (that's more than 3 billion in 100 weeks) or is that not in their interest. Do they lose money when I win? Is it just bookmaking they are doing?
They only join two parties together, and make a commission off of both. They make a commission from the one who buys and from the one who sells.

I, too, and making approximately 25% per week and have been for over a month. But I seriously doubt it will continue, at least the way I trade, as one loss will wipe out my entire account.

Maybe you don't trade that way, so more power to you, and share the wealth when you reach the 3 billion .
  • #367
  • Jul 8, 2009 8:20am Jul 8, 2009 8:20am
Quoting Dreamliner
They only join two parties together, and make a commission off of both. They make a commission from the one who buys and from the one who sells.

I, too, and making approximately 25% per week and have been for over a month. But I seriously doubt it will continue, at least the way I trade, as one loss will wipe out my entire account.

Maybe you don't trade that way, so more power to you, and share the wealth when you reach the 3 billion .
What if there isn't someone to take the opposite side of the trade?
If slaughterhouses had glass walls, everyone would be a vegetarian!
  • #368
  • Jul 8, 2009 8:37am Jul 8, 2009 8:37am
Quoting Gambler180
What if there isn't someone to take the opposite side of the trade?
I'd expect there to always be someone on the other side.

If you are one of the 5% of successful traders there will be the 95% trading in the opposite direction at any one time.

If you are one of the 95% then any of the 5% will take your offer.

  • #369
  • Jul 8, 2009 8:47am Jul 8, 2009 8:47am
Quoting Gambler180
What if there isn't someone to take the opposite side of the trade?
I don't believe IG lists trades if there are no "other side" parties.
  • #370
  • Jul 8, 2009 3:22pm Jul 8, 2009 3:22pm
k so i sold short EU > 1.390 at 3pm @8.00 today

obsly EU closed at around 1.3850 and not above 1.39 so i should be paid out right?? am i missing something here

my account is way in the red
  • #371
  • Jul 8, 2009 4:05pm Jul 8, 2009 4:05pm
Quoting pizdun
k so i sold short EU > 1.390 at 3pm @8.00 today

obsly EU closed at around 1.3850 and not above 1.39 so i should be paid out right?? am i missing something here

my account is way in the red
If it isn't fixed by now, contact IG either by email or phone. They respond immediately.
  • #372
  • Jul 8, 2009 4:50pm Jul 8, 2009 4:50pm
Quoting Gambler180
What if there isn't someone to take the opposite side of the trade?
If for example i place an offer for the e/u & i say that the e/u will not touch 1.4200 by tommorrow. Then probably no one will take the trade against me because e/u is way off from 1.4200. Thats when you won't get someone to take the opposite side. As long as it's reasonable price you will get trading action. There has to be some kind of risk involved.
  • #373
  • Jul 9, 2009 3:03pm Jul 9, 2009 3:03pm
Quoting Gambler180
Do you know how igmarkets earn money with binaries?
I compare it quite a bit to sports betting, which I used to do. They make book hooking up the people betting up and the people betting down. I have been reading this thread all day, and during the process signed up for a nadex demo account. Although it's a 25000 dollar account, I'm only trading with 100 at a time like I would be with a real account until I got a system worked out. Up 26 dollars so it would have been a 26% increase in one day which I can live with. We'll see what they put out for tomorrow. I'm betting the hourly numbers because in spot I have gotten to where I can trade the hourly charts with a fairly high degree of accuracy. The problem I had with the spot forex was getting stopped before the market moved in my direction (which killed me on cable yesterday about 3 times). I'm going to be pulling some of the money out of my micro account which is leveraged 400:1 in light of the news that the NFA might be reducing leverage to a 100:1 max anyways and using that money to trade binaries for the next few weeks and see how it goes trading intraday. Saving up for an engagement ring anyways, so I figure now's the time to try out something I might have a higher success rate with.
  • #374
  • Jul 9, 2009 3:06pm Jul 9, 2009 3:06pm
12% in 2 days....very profitable but oh boy.....

verry scary
  • #375
  • Jul 9, 2009 3:19pm Jul 9, 2009 3:19pm
Quoting pizdun
12% in 2 days....very profitable but oh boy.....

verry scary
Yeah it is. That's why I like the hourly trades because they're quick and I can get in early before the price goes nuts on me.
  • #376
  • Jul 9, 2009 7:42pm Jul 9, 2009 7:42pm
Does anyone have any experience trading FX Options with IKON? and are these the same kind of bianary options taht you guys are talking about? i have had an account with them for a while and have been toying with the idea of opening a small options account.
  • #377
  • Jul 9, 2009 9:09pm Jul 9, 2009 9:09pm
Quoting Voldemort
Does anyone have any experience trading FX Options with IKON? and are these the same kind of bianary options taht you guys are talking about? i have had an account with them for a while and have been toying with the idea of opening a small options account.
I demo traded them and I liked them. But I never saw any binary options, only calls and puts. The only thing I didn't like was the fact that you need two different platforms, one for fx and one for fx options.

I have no experience with them live.

I use protective options instead of stops on outright fx positions. Keeps me in the trade.:nerd:But I'm no expert. Just my two cents.
  • #378
  • Jul 10, 2009 9:17am Jul 10, 2009 9:17am
Quoting Yoda_Glenn
For those who don’t know, Binary Forex Options are a type of option whereby every contract you buy pays out a $100. In a binary transaction you are pretty much betting against or for an outcome. For example, there maybe a binary contract that says the EUR/USD will close above 1.0824 at the end of the week. You would either sell this outcome (bet against it) or buy it (bet for it.) If you are right, then you win $100 per contract, and if you lose then you only lose only what you sold the contract for.

Ok, So let me explain to you why Binary Forex...
what r the best charts to use for interday
  • #379
  • Jul 11, 2009 12:27am Jul 11, 2009 12:27am
hey guys, just found this thread tonight but have an idea for a strategy that may be an excellent application for binary options.

Refer to my previous post for more information and the indicators:
http://www.forexfactory.com/showthread.php?t=174947

EUR/USD & USD/CHF are the correlation all stars of FX. But, they do get out of whack and I have made a very distinct observation of what happens during this time of decorrelation of the pairs.. price moves explosively either up or down. So why not put a box around eur/usd to favor either an upside or downside breakout at a time when correlation breaks down.
The odds of it going sideways is very low from my experience so this seems like a high probability way to trade.

If you attach the correlation indicator to a eur/usd chart, de-correlation is when the values become higher, i.e. less negative compared with the previous periods. When it gets close to zero, we very often see a price explosion. This shows up as shorter red bars on my correlation indicator.
Any timeframe..

Looking forward to trying this out on a demo next week
  • #380
  • Jul 14, 2009 11:29am Jul 14, 2009 11:29am
Well, that was stressful. Trading with a 100 dollar account and today I'm up 21%. Definitely has it's risks involved. Nadex knows their probabilities and how to make book on Forex. I had one single trade that almost sank me. Either way, might be done for the day. I'll keep updating on here.
0 traders viewing now