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Binary Option Trading

  • #1
  • First Post: Nov 20, 2010 1:09pm Nov 20, 2010 1:09pm
Hey!! I've been trading binary options for a few months now, I was wondering if anyone here does?

The strategy I've been using is a 120/360 emas (which are 10/30 emas on the hour) on the 5 minute. I wait for price to get around these levels and then form a reversal candlestick. (pin bar, hanging man, engulphing etc)

If you guys are trading which platform do you use, what's your strategy, what timeframe do you use (5 minute, 15, 30, hour) maybe we could start posting some charts?

Lets see if we can put a killer strategy together!
  • #2
  • Nov 20, 2010 1:52pm Nov 20, 2010 1:52pm
I tried it on demo with IG for about a month.

I would not put real money on it.

You can't set a stop loss and have to watch it constantly.

A few times it wouldn't let me close out a trade.

I called the IG desk when that happened, and was told it was a work in progress.
  • #3
  • Nov 20, 2010 4:25pm Nov 20, 2010 4:25pm
Quoting billbss
I tried it on demo with IG for about a month.

I would not put real money on it.

You can't set a stop loss and have to watch it constantly.

A few times it wouldn't let me close out a trade.

I called the IG desk when that happened, and was told it was a work in progress.
I trade with start options? I know a few people make an average of 800 dollars + a day with binary options They never close a trade? That's the good thing about binaries.. you don't have to sit there and watch it? It's either positive or negative! So much hate with binaries..
  • #4
  • Edited 7:14pm Nov 20, 2010 6:15pm | Edited 7:14pm
Quoting beehivesjoe
I trade with start options? I know a few people make an average of 800 dollars + a day with binary options They never close a trade? That's the good thing about binaries.. you don't have to sit there and watch it? It's either positive or negative! So much hate with binaries..
They aren't positive or negative. Price ranges from 0 to 100.
I can tell from your post you don't know anything about binary options. Somebody probably told you about them and you didn't understand it.

Quote
I know a few people make an average of 800 dollars + a day with binary options
Right. I know people who make $1500 a day picking up aluminum cans from the side of the street.
There's a lie told every second on the internet. Yours was just one of them.
  • #5
  • Nov 20, 2010 7:05pm Nov 20, 2010 7:05pm
I have been trading them for awhile now through Nadex. They are owned by IG Markets. They are exchange traded, not OTC.

I like to trade the commodity binaries. Usually daily and weeklies. You need to understand that time decay is critical in deciding when to open or close positions.

One strategy I use on the weekly is to buy the high strike and sell the low strike on Monday for 5-10 points each. I look for the volatility during the week to book 30-50 points on one or both.

Another strategy I use is to buy or sell the dailies before major news events. You won't get whipsawed out of a position.
  • #6
  • Nov 20, 2010 10:17pm Nov 20, 2010 10:17pm
Quoting billbss
They aren't positive or negative. Price ranges from 0 to 100.
I can tell from your post you don't know anything about binary options. Somebody probably told you about them and you didn't understand it.

Right. I know people who make $1500 a day picking up aluminum cans from the side of the street.
There's a lie told every second on the internet. Yours was just one of them.

Before you sound like a complete dick maybe you should do some research? Binary Option end either in the money or out of the money. You get a 72 % profit if it's itm and 10% back if it's otm.

People like you are the reasons forums arent as good as they used to be. You have to go spouting off like you know everything and make yourself sound like a total prick.

Maybe there are more then one binary options? I don't know, you don't have to be a dick though.. What I know Binary Options are, are sites like Start Options, Any options. What you do is you have (depending on the site) a expiry window. You can buy a call or a put anytime within that hour except the last ten minutes (the lock out period). If you chose a call and the price closes above at the end of the hour you get 72 % if it closed below you only get 10% back. I have no idea what you're talking about dude..

And I know several people making a lot of money from this. Just because you have a negative attitude and the word "cant" in your life, you can't achieve this.

Could someone tell me what other Binary Options there are? I would love to hear about them and discuss MY binary options.

Hope everyone is having a nice weekend!
  • #7
  • Nov 20, 2010 10:20pm Nov 20, 2010 10:20pm
[quote]I can tell from your post you don't know anything about binary options. Somebody probably told you about them and you didn't understand it.[quote]

If you would have read the begining post I said "I HAVE BEEN TRADING THESE FOR A FEW MONTHS" that would be kind of weird if I didn't even know what I was trading.. wouldn't it?
  • #8
  • Nov 20, 2010 10:44pm Nov 20, 2010 10:44pm
Quoting beehivesjoe
Hey!! I've been trading binary options for a few months now, I was wondering if anyone here does?...
I've looked at binary options but it seems a bit risky, of course with the right strategy it could make sense. I was thinking something along the lines of combining trades with forex, but then the payout is only 70-80% so that's a little limiting. I think I like regular options better, gives more flexibility, at least you can close the trade when you want.

With binaries you can't close right? So what kind of money management do you use?

It's more difficult to manage your money with binary options, so every time you win you only make say 80% but when you lose, you lose 90%, so it's not like in forex we can have a 2:1 risk reward or 3:1 etc. It's always risking more than you stand to gain.
It's a great business for the market maker, the broker is on the other side of the trade. Same with regular options, you're always trading against the market maker, so they always pocket the bid-ask spread, ofcourse it's a bit more regulated. But these binary options for forex are an OTC product.

Seems pretty risky for me, but I'm definitely intrigued how you or others trade them.
Good luck....
  • #9
  • Nov 20, 2010 10:57pm Nov 20, 2010 10:57pm
Quoting chitak
I've looked at binary options but it seems a bit risky, of course with the right strategy it could make sense. I was thinking something along the lines of combining trades with forex, but then the payout is only 70-80% so that's a little limiting. I think I like regular options better, gives more flexibility, at least you can close the trade when you want.

With binaries you can't close right? So what kind of money management do you use?

It's more difficult to manage your money with binary options, so every time you win you only make say 80%...
I am just now getting profitable with them. That's what most people say, but a few people I know are doing awesome! All you have to have is a decent strategy and stick to your rules! The main reason so many fail at binaries is because they treat it like gambling. They go all in, or get in when there signal hasn't told them to yet.

The girl I know that is making a KILLING off of binaries has been trading them for around 5 months now I would say? She uses 10% risk on her account each trade. I think some sites now give you the option to close the option out, but it's not worth it IMO because you hardly get any more back. And sometimes a trade goes crazy and comes back to ya

I know a guy that was trading forex for a living and started trying binaries and now trades them instead. The reasons are, they are WAY more simple, you get in then you either win or lose. You don't have to try and figure out exit, it only has to move .01 away from ur entry to win, you get a huge return. Pretty much all you have to do is wait for a pullback while it's trending and buy on the pullback or wait until it's ranging (which is defiantly the best) then you play both sides of the channel and make $$$!!

Anyways, it does sound risky, but if you put the time and effort into it, you won't be disapointed. If you want to try out a demo, tradesmarter.com or optionbit, or globaloption. They all have nice demos.

Hopefully we get some traders in here that do trade them so we can get some strategy ideas besides mine

Have a great weekend everyone!
  • #10
  • Nov 21, 2010 9:07am Nov 21, 2010 9:07am
Quoting beehivesjoe
I am just now getting profitable with them. That's what most people say, but a few people I know are doing awesome! All you have to have is a decent strategy and stick to your rules! The main reason so many fail at binaries is because they treat it like gambling. They go all in, or get in when there signal hasn't told them to yet.

The girl I know that is making a KILLING off of binaries has been trading them for around 5 months now I would say? She uses 10% risk on her account each trade. I think some sites now give you the option to close...

How are you able to trade with the brokers you mentioned? Doesn't look like they are available to US residents.
  • #11
  • Nov 21, 2010 10:04am Nov 21, 2010 10:04am
Quoting beehivesjoe
I am just now getting profitable with them. That's what most people say, but a few people I know are doing awesome! All you have to have is a decent strategy and stick to your rules! The main reason so many fail at binaries is because they treat it like gambling. They go all in, or get in when there signal hasn't told them to yet.

The girl I know that is making a KILLING off of binaries has been trading them for around 5 months now I would say? She uses 10% risk on her account each trade. I think some sites now give you the option to close the...

Hi beehivesjoe, I will try a demo account this week because I am curious and we will see if I can do something with it...Did you read about the thread http://www.forexfactory.com/showthread.php?p=4185163, yoga glen trade a strategy call nadex bull spread and it's seem that it is better then binary option...My problem is that i live in Canada and this strategy is just offer with nadex company in the US and they just taking application for US resident and IG market offer that strategy too but same problem for me they do not take canadian resident, anyway read the thread and tell me what you think.... Max
  • #12
  • Nov 23, 2010 9:48pm Nov 23, 2010 9:48pm
Can anybody share their strategy to trade binary options.
  • #13
  • Nov 23, 2010 10:01pm Nov 23, 2010 10:01pm
Lots of strategies my brotha

Depends on what type of trading you want to do. If you are a trend trader at the 9/18 emas and wait for a pullback into these areas. If the market is sideways DO NOT trade this strat! Wait for it to break out of the consolidation.

While trading that strat if the market is going sideways just ignore the mas and trade the channel. Simple as that Demo optionbit with that strat until you are successful and BAM money in da bank

Lets get this top going guys! DOES ANYONE TRADE?!
  • #14
  • Nov 23, 2010 10:09pm Nov 23, 2010 10:09pm
hey bee. ive just started trading binaries. using nadex right now. you can open up a 25000 acct, but i called them and said if they could lower it to 100 dollars only as i want to try it out with just that amount. want to observe what that hundred dollars can do and cant do. just today ive made 74 dollars on one trade. now thats fantastic. what i like about it is that you cant lose more than what you paid for. rigth now i have a short on u/s that only cost me 5 dollars. now if it goes against me i will not lose anymore than that as ive already paid into it. now lets say it goes against me and then i come back to see that im in profit i win. because the trade will not close untl exparation. which is awesome. im doing the daily ones. so if all goes well i can win 95 dollars or whatever profit i want to close it at. but im just risking 5 bucks. damn thats good. no sl or tp to worry about. cheers man
  • #15
  • Nov 23, 2010 10:12pm Nov 23, 2010 10:12pm
Quoting treadline
hey bee. ive just started trading binaries. using nadex right now. you can open up a 25000 acct, but i called them and said if they could lower it to 100 dollars only as i want to try it out with just that amount. want to observe what that hundred dollars can do and cant do. just today ive made 74 dollars on one trade. now thats fantastic. what i like about it is that you cant lose more than what you paid for. rigth now i have a short on u/s that only cost me 5 dollars. now if it goes against me i will not lose anymore than that as ive already paid...
hey thanks for the reply
We have a misunderstanding the... What Im talking about "binary Options" are a put or a call. At the end of the hour if it closes above or below your strike price your a winner or a loser.

Lots of other people are talking about your binary option. could you give me some info on it? I've never heard of them before.. Thanks
  • #16
  • Edited 10:37pm Nov 23, 2010 10:25pm | Edited 10:37pm
Lots of other people are talking about your binary option. could you give me some info on it? I've never heard of them before.. Thanks [/quote]


hey yes. now just to let you know that ive just started trading this, this week. dont know alot of it for now. now when i called them i had lots of questions. like min to open an acct. 100 dollars. you can have bull binary where it will expire every 2 hrs. daily where it will expire 3pm est. wkly where it will expire at the end of the week on friday at 3pm est. you can trade metals, indices. and events like the nfp or some major news. just open an acct with them and callle them to lower it to the same amount that you will be depositing on the acct. so thats all i know so far. like a said you cant lose more than you paid into it. there are different sets of price you can choose. some will only pay out 60 if you win, but you have to paid into it for 40. because its 0 or 100. sort of like percentage. what ive noticed is that the higher pay out is much slower movement that the lower pay out. and they dont go against you like some spot fx brokers. its either theres a bid or offer open or not. hope that helps.
  • #17
  • Nov 24, 2010 2:25am Nov 24, 2010 2:25am
Quoting treadline
hey bee. ive just started trading binaries. using nadex right now. you can open up a 25000 acct, but i called them and said if they could lower it to 100 dollars only as i want to try it out with just that amount. want to observe what that hundred dollars can do and cant do. just today ive made 74 dollars on one trade. now thats fantastic. what i like about it is that you cant lose more than what you paid for. rigth now i have a short on u/s that only cost me 5 dollars. now if it goes against me i will not lose anymore than that as ive already paid...
How can you mamke 74$ risking just 5$. Can you please explain
  • #18
  • Nov 24, 2010 5:58am Nov 24, 2010 5:58am
Quoting reachjj
How can you mamke 74$ risking just 5$. Can you please explain


i didnt. on that trade i risk 28 to make 74. its all about 0's and 100's. you have a ceiling or a floor. you still have to know which direction the trend is going. now on that trade i had 2 hrs to make 74. so the currency has to move fast to make that much money. it was the e/u short yesterday morning. now im in the usa pst. i trade only during the during the us session. hope that helps.
  • #19
  • Nov 24, 2010 11:26am Nov 24, 2010 11:26am
looks interesting. can you start a journal of your trades and strategy, so that everybody will get benifitted.

Thanks,
  • #20
  • Nov 24, 2010 11:40am Nov 24, 2010 11:40am
Quoting treadline
Lots of other people are talking about your binary option. could you give me some info on it? I've never heard of them before.. Thanks

hey yes. now just to let you know that ive just started trading this, this week. dont know alot of it for now. now when i called them i had lots of questions. like min to open an acct. 100 dollars. you can have bull binary where it will expire every 2 hrs. daily where it will expire 3pm est. wkly where it will expire at the end of the week on friday at 3pm est. you can trade metals, indices. and events like the nfp or some major news. just open an acct with them and callle them to lower it to the same amount that you will be depositing on the acct. so thats all i know so far. like a said you cant lose more than you paid into it. there are different sets of price you can choose. some will only pay out 60 if you win, but you have to paid into it for 40. because its 0 or 100. sort of like percentage. what ive noticed is that the higher pay out is much slower movement that the lower pay out. and they dont go against you like some spot fx brokers. its either theres a bid or offer open or not. hope that helps.[/quote]

That sounds interesting but I think I like my binaries better. Mine expire every 30 minutes. So if I think price is going to close below .xxx within 30 minutes I buy a put. IF price closes below I get 80% if it closes above I don't get any back. I like to play the momentum so I like the 30 minute expirations. You can trade currencies, commdoities, stocks or indices!
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