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Why Binary Forex Options are better than Spot Forex

  • #521
  • Mar 14, 2011 4:46am Mar 14, 2011 4:46am
I have to admit I haven't read the whole thread but I can tell you categorically if IG are flogging you something, you'll be on the wrong end of value. That is guaranteed. They are running a business and are not in the habit of giving any value away whatsoever.

You may last a day, a week, a month but you won't last much longer.
He was looking for the card so high and wild hed never need to deal another
  • #522
  • Mar 16, 2011 9:28pm Mar 16, 2011 9:28pm
Quoting dr_who
I have to admit I haven't read the whole thread but I can tell you categorically if IG are flogging you something, you'll be on the wrong end of value. That is guaranteed. They are running a business and are not in the habit of giving any value away whatsoever.

You may last a day, a week, a month but you won't last much longer.
Do you have an alternative to Nadex?
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #523
  • Mar 17, 2011 2:27am Mar 17, 2011 2:27am
Quoting kapital
I can dig it!
Nice trades there!

How did you go for them?

Thanks!
  • #524
  • Mar 20, 2011 11:37pm Mar 20, 2011 11:37pm
Quoting piptastic7
Nice trades there!

How did you go for them?

Thanks!
I don't remember now (lol).

However, I trade them like I do spot forex, only difference being choosing the option which brings the most profit in the best context of time.
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #525
  • Mar 21, 2011 5:37am Mar 21, 2011 5:37am
kapital, so in your trading, option on spot is better than forex itself?
  • #526
  • Mar 23, 2011 12:07pm Mar 23, 2011 12:07pm
So why BFO isn't popular comparing to the original forex trading which is harder (refer to opinions in this thread)
  • #527
  • Mar 24, 2011 11:07pm Mar 24, 2011 11:07pm
Quoting MoreYummy
kapital, so in your trading, option on spot is better than forex itself?
In my opinion, yes. Not having to worry about stops and opportunities for using higher leverage are the things which sway my opinion in favor of trading them over spot. Although time works against you, having a very good setup makes that almost a non-factor.
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #528
  • Mar 24, 2011 11:11pm Mar 24, 2011 11:11pm
Quoting qazx
So why BFO isn't popular comparing to the original forex trading which is harder (refer to opinions in this thread)

Maybe it has to do that it isn't publicized as much. I know I had never heard of it before stumbling across this thread.
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #529
  • Apr 7, 2011 8:07am Apr 7, 2011 8:07am
Here is a screenshot of a few trades of mine. As you can see, all of them were in profit, but I had incredible success with the selling of the USD/JPY binary option. It was due to expire at 11am est (for some reason the time in the screenshot is incorrect). I sold 10 contracts at 10:26am est @ 93. My maximum risk was $70 (one can only dream of that kind of leverage in spot forex these days....lol). The contract was priced @ 4 when this screenshot was taken. I had only been in the trade about 15mins. The actual price of the pair had sold off 20+ pips from the time I entered the trade.
Attached Image
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #530
  • Apr 13, 2011 2:34am Apr 13, 2011 2:34am
I opened a demo account with OptionBit. My first 3 trades were successful (I hope this is a sign of things to come).
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #531
  • Apr 13, 2011 3:56am Apr 13, 2011 3:56am
Quoting kapital
I don't remember now (lol).

However, I trade them like I do spot forex, only difference being choosing the option which brings the most profit in the best context of time.

I guess the next questionis about how you trade the Spot which leads to trading options? Would please give some idea of how you really take the trades?

Thank you!
  • #532
  • Apr 13, 2011 5:54am Apr 13, 2011 5:54am
Quoting piptastic7
I guess the next questionis about how you trade the Spot which leads to trading options? Would please give some idea of how you really take the trades?

Thank you!
Basic support and resistance using market structure and pitchforks (median lines).

Check out these pitchfork threads, if you haven't already:

http://www.forexfactory.com/showthre...ghlight=median

http://www.forexfactory.com/showthre...ight=pitchfork

You just have to pick your spots and hope for the best.

I'm currently in a short binary option on the GBP/USD from 1.62809 due to expire at 9am est. However, I got in later than I would have liked.
Attached Image (click to enlarge)
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"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #533
  • Apr 13, 2011 6:06am Apr 13, 2011 6:06am
Price did a swinger-roonie in those last few minutes and the trade ended with a loss by just a few pips. Too bad I didn't have that higher entry.

Oh well, on to the next trade!
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #534
  • Apr 13, 2011 8:53am Apr 13, 2011 8:53am
Quoting kapital
Basic support and resistance using market structure and pitchforks (median lines).

Check out these pitchfork threads, if you haven't already:

http://www.forexfactory.com/showthre...ghlight=median

http://www.forexfactory.com/showthre...ight=pitchfork

You just have to pick your spots and hope for the best.

I'm currently in a short binary option on the GBP/USD from 1.62809 due to expire at 9am est. However, I got in later than I would have liked.
Thanks for the info

Do you still trade with Nadex? Or is OptionBit better?
  • #535
  • Apr 13, 2011 3:47pm Apr 13, 2011 3:47pm
Quoting piptastic7
Thanks for the info

Do you still trade with Nadex? Or is OptionBit better?
For now, I'm going with OptionBit. It's not that I regard them as a better broker, but because it fits within the context of certain circumstances for me at this time. However, I do intend to trade with Nadex in the future because I like the potential of high leverage and the bull spread option.
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #536
  • Apr 13, 2011 4:42pm Apr 13, 2011 4:42pm
Quoting kapital
Price did a swinger-roonie in those last few minutes and the trade ended with a loss by just a few pips. Too bad I didn't have that higher entry.

Oh well, on to the next trade!

Don't you love that? Just another note about OB, they close the trades a few seconds (less than a minute) before the brokers I use to watch the price do. It does not affect it much, I have made hundreds of OB trades and it has only happened twice that it made a super last minute spike, one time it made it into a winner, one time a loser so there does not seem to be a bias.
  • #537
  • Apr 14, 2011 2:13am Apr 14, 2011 2:13am
"In brightest day...in darkest night...no binary trade shall escape my sight!"
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Attached Image
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #538
  • Apr 14, 2011 5:43pm Apr 14, 2011 5:43pm
Quoting kapital
"In brightest day...in darkest night...no binary trade shall escape my sight!"
Awesome, you are still on demo correct? Do you notice a spread on those very short term trades you have there, the under half hour ones? I know on the live account as the time gets closer to expiry spreads start to show up sometimes, just wondering if you are seeing that at all on demo.
  • #539
  • Apr 14, 2011 11:13pm Apr 14, 2011 11:13pm
Quoting JohnnyGURU
Awesome, you are still on demo correct? Do you notice a spread on those very short term trades you have there, the under half hour ones? I know on the live account as the time gets closer to expiry spreads start to show up sometimes, just wondering if you are seeing that at all on demo.

Yes, I'm still in demo and did notice the spreads...can't say that I'm falling heads over heels over it.

Let's say I entered a put at 1.6300 but there is a spread of 4 pips, making price show up in the trade 1.6304. Now, if price moved down 2 pips, the price in the trade window would show up as 1.6302. However, trade window will also show that I'm in the money even though the displayed price is at 1.6302. If this is the scenerio at expiry, what happens? Is it a winner or a loser?
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #540
  • Edited Apr 15, 2011 12:02am Apr 14, 2011 11:46pm | Edited Apr 15, 2011 12:02am
I'm experiencing "spreaditis" rught now. The nearest option on the gbp/usd has about an an 8 pip spread below the correct price whereas the furthest option is displaying the correct price.

LOL...before I could finish typing this message, price has corrected itself on the nearest option and is now trading at the underlying (correct) price. Question: Do the spreads eventually disappear on all options before they expire, thus bringing price back in line with the underlying price?
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
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