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

Trading is not the same as binary, trading is a zero sum game (excluding commissions) and binary is betting in the usual form. You are taking a price which the bookie quotes you on an outcome of an event. The bookies build in a premium in this quoted price which boils down to you not getting an absolute reflection of what the odds of the event are in real life.

Regardless of the outcome the price always favours the house... like any other form of gambling. You will notice that brokers who offer binary make it clear they are regulated by some form of gambling commission which underlines their status as your bookie. Once you understand that they're your booker and not a broker to a transaction between two people, it will be much easier for you to relate it to betting in your local betting shop. Ever wonder why a bookie generally wins overall? Google it and you will find the a better explanation of the mechanics. I'm just trying to help you preserve your capital! and plus any time spent on that type of rubbish will just distract you from becoming a profitable trader... which is why your here in the first place my friend.

Moderators why isn't this post in the commercial forum or better yet removed, you're facilitating the depletion of traders capital allowing rubbish like this in a trading discussion area. BINARY IS NOT TRADING.
Quoting evertontrade

Moderators why isn't this post in the commercial forum or better yet removed, you're facilitating the depletion of traders capital allowing rubbish like this in a trading discussion area. BINARY IS NOT TRADING.

It's a discussion;

http://www.futuresmag.com/2010/01/01...binary-options

I'm not a big fan of binary options but it's all a part of trading. Millionaires have been made via futures trading, etc., etc.

To believe that it's not part of a trading discussion is nonsense.


Have a nice day
When the Joker is in the deck.. fear not and play it well
  • Post #603
  • Quote
  • Edited at 6:23pm Nov 3, 2012 6:06pm | Edited at 6:23pm
Millionaires are made in casinos and by backing horses.... that means nothing. Binary is not trading, this is supposedly a trading discussion forum.

I can see how this could appear a bit neurotic so I will park it here, I just hate the idea of novice traders being beguiled into this form of gambling with the illusion it's a fair game based on the original thread title.

If you enjoy a punt, give it a go. If you want to be a trader then stick to trading.
Quoting evertontrade
Millionaires are made in casinos and by backing horses....
I suppose I'll go for that, then

And yes, this is supposedly a trading discussion forum of which binary options are a part of. I personally don't care for BO but but I'm becoming more familiar with it.

I guess you can take that however ya'ount to.

Have a nice day.
When the Joker is in the deck.. fear not and play it well
You have a nice day too
Quoting evertontrade
Millionaires are made in casinos and by backing horses.... that means nothing. Binary is not trading, this is supposedly a trading discussion forum.

I can see how this could appear a bit neurotic so I will park it here, I just hate the idea of novice traders being beguiled into this form of gambling with the illusion it's a fair game based on the original thread title.

If you enjoy a punt, give it a go. If you want to be a trader then stick to trading.


I think you're spot on. I punt binaries,and it is exactly that,a punt.Not to say they don't give up good odds,but they are far removed from trading,as most people understand it. Good journal by the way.
Quoting jazzman
[/i]

I think you're spot on. I punt binaries,and it is exactly that,a punt.Not to say they don't give up good odds........
hmmmmm.... now that I think about it, I think my thought was that it doesn't matter what you think of BO, it exists and therefore should not be banned from a trading forum as previous dude (aka, evertontrade) suggested.

That's pretty much it.
When the Joker is in the deck.. fear not and play it well
Quoting evertontrade
Trading is not the same as binary, trading is a zero sum game (excluding commissions) and binary is betting in the usual form. You are taking a price which the bookie quotes you on an outcome of an event. The bookies build in a premium in this quoted price which boils down to you not getting an absolute reflection of what the odds of the event are in real life.

Regardless of the outcome the price always favours the house... like any other form of gambling. You will notice that brokers who offer binary make it clear they are regulated by some...

Sorry, but who are you to be telling anyone what can and can't be discussed on this forum? Similarly, you seem to be fairly misinformed about binary options.

I guess, semantically you are right. Using Binary options is not 'trading' i.e. exchanging one currency for another with another party, facilitated by a broker. But it's just another mechanism at an individuals disposal, which he or she can use to exploit their view of the market.

There are pro's and cons to this mechanism. But it's a choice. I also think it's a very valid discussion to have, and absolutely should have a place here.

Personally I've adapted my trading knowledge and methods + developed a money management system which makes the most of this mechanism and I'm making more money, more consistently using BO's than i ever did trading Spot. Without any excessive risks.

I'm well aware that i'm essentially making a bet with another party ( the broker ), but rely on my ability to read the price action of the underlying asset and base my 'bets' on that. To me, it's no more gambling than 'trading' spot is.

The fixed win loss - being a known thing is IMHO a bonus - as is not being able to get stopped out by an errant spike in price before your TP is hit. As long as you are aware of the instrument you are trading and adapt your style accordingly, I think there are great advantages to some forms of BO's.

At the end of the day, i want to make money. Not have a badge saying I'm a 'Trader'. So if I see the market behaving in a certain way i think will have a specific outcome.......if i then choose to say to my broker ( or my mate in the pub ) "hey, i bet you $xxx the market will be here by this time" and you choose to physically buy one currency against another using leverage. More power to both of us. We both have a choice, both ways of doing things are valid and have their own risks and rewards. It will all depend on your ability to read the underlying market and know whats going on - THAT is the one thing that doesn't change.

I agree that the title of this thread is naff to say the least, but you may want get a little better informed and open minded before coming on here and demanding that moderators move threads and what not.
- Look to the left, Trade to the right - I am the system
  • Post #609
  • Quote
  • Edited at 9:44am Nov 4, 2012 7:36am | Edited at 9:44am
Quoting Sebastiaan76
Sorry, but who are you to be telling anyone what can and can't be discussed on this forum? Similarly, you seem to be fairly misinformed about binary options.

I guess, semantically you are right. Using Binary options is not 'trading' i.e. exchanging one currency for another with another party, facilitated by a broker. But it's just another mechanism at an individuals disposal, which he or she can use to exploit their view of the market.

There are pro's and cons to this mechanism. But it's a choice. I also think it's a very valid discussion...
Very well put.
My understanding is that 95% of "traders" consistently lose money trading spot forex, so not sure why people are getting so excited and paternalistic about binary options.

Bottom line is you are going to lose money whether its spot forex or binary options unless you a very sound trading plan and have the diclipline to stick to it.
Everything has its pros and cons , and the biggest con here is the broker , ie : beside IG/Nadex which broker you can trust for binaries , anyoption , bbinary ?
I use Betonmarkets.com. They have very good quotes ( this isn't an ad!!)
As said before, u need a good system, otherwise u'll lose...
Quoting tar
Everything has its pros and cons , and the biggest con here is the broker , ie : beside IG/Nadex which broker you can trust for binaries , anyoption , bbinary ?
I think that the biggest downside with BO's is the brokers available. I use IG in Australia. I'd also use GFT Markets, Saxo Capital Markets and VantageFX/Enfinium as those organisations are well capitalised, regulated and have some kind of history in brokering.

ALL the others like 24Options, Banc De Binary, Anyoption, Traderush etc I'm not keen on. MANY MANY of these are simply turnkey online businesses that are whitelabels of places like www.spotoption.com. Many of which are regulated in Cyprus.

e.g. Banc De Binary markets itself as a broker with offices on Wall Street......fact is, they have a serviced office ( unmanned ) address on Wall street, but main operation is run from Israel. They are a white label business of Spotoption and fall under the jurisdiction of Cyprus. Why the dodgy marketing? Not a great way to build trust is it.

The biggest gripe I hear with these brokers that are 'regulated' in Cyprus is that it's hard to get your money out in a timely fashion, with many taking weeks...........but you do get your money - eventually.

If you live in the U.S. it's very hard to open an account with anyone other than Nadex ( owned by IG ) - Enfinium and GFT won't allow U.S. accounts.

Of course BDB and all the other white label type brokers will let U.S. customers in.

Also be aware of the 'Funding Bonus' scam with some of these other brokers. Dont take any funding bonus's.

I'm not saying don't trade with any of the other 'brokers' but just be aware, you may be depositing funds with an online business run out of a some dodgy office in a part of the world you hadn't considered based on their website.

i.e. the betonmarkets site above......never heard of them, but if you live in the UK you will be regulated by Isle of Man, anywhere else in the EU you will have your account opened in Malta and the rest of the world - you get to have your funds deposited in and regulated by Costa Rica.

The good thing is, many of the better known and regulated brokers are starting to offer BO's, which will hopefully squeeze out some of the smaller less bonafide operators.

the key here is. If you are going to open an account with BDB or 24Option. Make it a small account, and withdraw frequently. I wouldn't be depositing $10k or $20k with any of them. Whereas I'm happy to have that amount sitting with an IG or GFT.
- Look to the left, Trade to the right - I am the system
Thanks , i am not new to BO i traded BO from 2006 on-off with IG but my account with them is closed due to some problems which was my fault to be honest , i agree with you regarding these BO brokers , add to that these brokers don't offer real binary prices like IG ie : 0-100 range with different odds and early close-out , i am not so fascinated about this 70-80% return which is very poor and misleading , the problem is i cant open an account with Nadex as i am not from the US which would be the best option out there , will take a look at Vantagefx and GFT .
Is Anyoption really bad ? they are old and they have monthly binaries which could be reasonable .
BTW betonmarkets are well known and old in this business ...
Quoting tar
Thanks , i am not new to BO i traded BO from 2006 on-off with IG but my account with them is closed due to some problems which was my fault to be honest , i agree with you regarding these BO brokers , add to that these brokers don't offer real binary prices like IG ie : 0-100 range with different odds and early close-out , i am not so fascinated about this 70-80% return which is very poor and misleading , the problem is i cant open an account with Nadex as i am not from the US which would be the best option out there , will take a look at Vantagefx...
I use the custom options product with IG ( not the 0-100 stuff ) which is basically the high/low option with fixed 79% return. I actually quite like the product and have made it work for me, but had to adapt my money management and trading strategy to counter the inherent negative R.

The 0-100 stuff is also great, and if you buy/sell at the right time you can often get phenomenal R:R ( i.e. buy a PUT @ 15 points as price is pushing into a supply zone/resistance which then bounces back below the strike and closes @ 100 points..........that is always fun!! )

I really like GFT's implementation of binaries as well. It's the 0-100 kind with the interface of the 'high/low'.

I think it's a part of the biz that will mature quickly and the really dodgy players will soon get squeezed out.

Not too sure about Anyoption other than: "anyoption™ is registered in Cyprus since 2008, owned by a group of reputable individuals with years of experience in risk management, derivatives, forex trading, exotic options pricing, payment processing and international laws and legislations."

which puts me off
- Look to the left, Trade to the right - I am the system
Quoting Sebastiaan76

Not too sure about Anyoption other than: "anyoption™ is registered in Cyprus since 2008, owned by a group of reputable individuals with years of experience in risk management, derivatives, forex trading, exotic options pricing, payment processing and international laws and legislations."

which puts me off
lol agree sounds unprofessional to me !

The problem with BO is it is hardly getting any volume on exchange traded binaries at the CBOE ( SPX and VIX ) BO , they prefer vanilla options over it ... also check IG's financial results they get 5% of their revenue from binaries ,40% from indices , and 35% from FX , apparently traders prefer outright trading although the r:r is lower than BO but maybe the reason is they don't want an expiry time for their positions , plus i think most traders don't know about binaries and don't really understand it ...
Quoting Slim Buffett
hmmmmm.... now that I think about it, I think my thought was that it doesn't matter what you think of BO, it exists and therefore should not be banned from a trading forum as previous dude (aka, evertontrade) suggested.
Quoting Slim Buffett

That's pretty much it.

I dip in and out of threads, so your point of view may have merit.
To my mind, if you are risking money, then it warrants inclusion on a trading forum.I To me personally, BO are still a punt, the odds can be advantageous, but its a long way removed from real trading.
My BO are like the 4.10 at Kempton, a bit of fun.
Each to their own...............
You don't have to be sorry, I wasn't telling anyone what can or cannot be discussed... this isn't a dictatorship.

I think you agree with me enough to understand my complaint, I personally think it's irresponsible to allow discussion of binary within a trading discussion area on the basis that it's a completely different animal to trading. You have your opinion and I have mine but I think you'd be wise to consider the amount of puppet accounts used to created promotional conversations all over this forum to charm money away from people - there is far too much of it.

Do you not think the thread title itself is not a promotion? It effectively translates to "Why picking the correct score to a football game via betfair is better than trading"... put as plain as that, do you now see my concern and why it could be potentially misleading to some (and profitable to others)?



Quoting Sebastiaan76
Sorry, but who are you to be telling anyone what can and can't be discussed on this forum? Similarly, you seem to be fairly misinformed about binary options.

I guess, semantically you are right. .....



I agree that the title of this thread is naff to say the least.....
Quoting evertontrade
You don't have to be sorry, I wasn't telling anyone what can or cannot be discussed... this isn't a dictatorship.

I think you agree with me enough to understand my complaint, I personally think it's irresponsible to allow discussion of binary within a trading discussion area on the basis that it's a completely different animal to trading. You have your opinion and I have mine but I think you'd be wise to consider the amount of puppet accounts used to created promotional conversations all over this forum to charm money away from people - there...
If you think retail forex is trading maybe you should think again , the real currency market has nothing to do with retail forex , you are just simply taking a bet on a currency pair to go up/down and for every pip you are right you get rewarded money and for every pip you are wrong you lose money simple as that , but in reality you didn't buy any real currency . I think it depends maybe the 2 min BO could be considered pure gambling but longer term BO like weekly and monthly expiries i dont see why it cant be considered derivative trading , not to mention that exchanges like CBOE has some binaries ...
This is true for the majority of scenarios but I trade with LMAX which is not applicable to your post.

Quoting tar
If you think retail forex is trading maybe you should think again , the real currency market has nothing to do with retail forex , you are just simply taking a bet on a currency pair to go up/down and for every pip you are right you get rewarded money and for every pip you are wrong you lose money simple as that , but in reality you didn't buy any real currency . I think it depends maybe the 2 min BO could be considered pure gambling but longer term BO like weekly and monthly expiries i dont see why it cant be considered derivative trading , not...
Quoting evertontrade
This is true for the majority of scenarios but I trade with LMAX which is not applicable to your post.
No difference , still a bet , Lmax is an exchange for cfds yes but you still making a bet you didn't buy any product you just taking a bet , like Betfair ( which owns Lmax btw ) it is an exchange but it is still a bet on sports instead of financials ....
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