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Why Binary Forex Options are better than Spot Forex

  • #621
  • Nov 5, 2012 5:45am Nov 5, 2012 5:45am
LMAX trades are matched. Yes I am aware it's ran by betfair but your statement is incorrect. You're comparing apples with oranges.

Quoting tar
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 ....
  • #622
  • Nov 5, 2012 5:46am Nov 5, 2012 5:46am
Quoting evertontrade
LMAX trades are matched. Yes I am aware it's ran by betfair but your statement is incorrect. You're comparing apples with oranges.
So what they are matched , betfair bets are matched as well , it is still betting ...
  • #623
  • Nov 5, 2012 5:52am Nov 5, 2012 5:52am
This is a ridiculous argument. You are trying to compare speculating on a commodity to trading events via odds given to you by a bookie. If you're not aware of the difference between the two then I suggest you use google.



Quoting tar
So what they are matched , betfair bets are matched as well , it is still betting ...
  • #624
  • Nov 5, 2012 5:55am Nov 5, 2012 5:55am
Quoting evertontrade
This is a ridiculous argument. You are trying to compare speculating on a commodity to trading events via odds given to you by a bookie. If you're not aware of the difference between the two then I suggest you use google.
What is the difference ? if the product is undeliverable ( CFDS ) then you are taking a bet (up/down) different type of bet which is called "spread bet" which is available for sports as well .... sorry ...
  • #625
  • Nov 5, 2012 6:07am Nov 5, 2012 6:07am
The difference is I am buying or selling something at a price dictated by the market, I'm entering into a transaction with another buyer or seller at a price outside of either our control. Sure there is a spread/commission which I pay for the privilege.

Betting basically means your entering into an agreement with you bookie to risk an amount at a price quoted by your bookie who sets his own book. The price offered to you is geared in a way that you don't have value... this is how a bookie makes a profit overall and protects themselves. In simple terms, if an event had a 1/4 chance of happening... your bookie won't offer you 4/1 odds he will offer you 3/1 which is his edge.

Spread betting is slightly different from event based betting and isn't really relevant to this discussion but again with spread betting, you're still trading against your bookie and due to how spread betting is regulated... a huge conflict of interest exists which is why price feeds for such services include irregular disparity from actual market price.

Quoting tar
What is the difference ? if the product is undeliverable ( CFDS ) then you are taking a bet (up/down) different type of bet which is called "spread bet" which is available for sports as well .... sorry ...
  • #626
  • Nov 5, 2012 6:13am Nov 5, 2012 6:13am
Quoting evertontrade
The difference is I am buying or selling something at a price dictated by the market, I'm entering into a transaction with another buyer or seller at a price outside of either our control. Sure there is a spread/commission which I pay for the privilege.

Betting basically means your entering into an agreement with you bookie to risk an amount at a price quoted by your bookie who sets his own book. The price offered to you is geared in a way that you don't have value... this is how a bookie makes a profit overall and protects themselves. In simple...
with betfair you are betting on sports against other punters not a bookie so it is not betting ?
In Lmax you are not buying or selling anything you just trading on numbers which practically means you are betting , come back to BO odds yes it is skewed a bit against you but this has nothing to do with the betting argument , same applies to outright trading you are paying the spread which means that odds are skewed against you a bit ....
  • #627
  • Nov 5, 2012 6:15am Nov 5, 2012 6:15am
Betfair is an exchange so not really classed as a bookie. Brokers who offer binary betting are acting as bookies.

I'm not sure if we're going to agree here so I recommend we call it a day and both go on our way with our own ideas.

Quoting tar
with betfair you are betting on sports against other punters not a bookie so it is not betting ?
In Lmax you are not buying or selling anything you just trading on numbers which practically means you are betting , come back to BO odds yes it is skewed a bit against you but this has nothing to do with the betting argument , same applies to outright trading you are paying the spread which means that odds are skewed against you a bit ....
  • #628
  • Nov 5, 2012 6:16am Nov 5, 2012 6:16am
Quoting evertontrade
Betfair is an exchange so not really classed as a bookie. Brokers who offer binary betting are acting as bookies.

I'm not sure if we're going to agree here so I recommend we call it a day and both go on our way with our own ideas.
My point is trading retail forex and cfds is betting as well .
  • #629
  • Nov 5, 2012 6:19am Nov 5, 2012 6:19am
Yes I think I understand your stance but I do not agree and I don't think carrying on will solve it. Best of luck to you!

--- Edit

This has turned into a "is trading gambling" debate and I imagine this ground has been covered many times before. My opinion is as follows:

Trading is and it isn't gambling... the difference between trading and standard bookie based gambling is value and difficulty. You get true value in trading but as a consequence it's more difficult. With standard betting you pay a premium for simplicity.


Quoting tar
My point is trading retail forex and cfds is betting as well .
  • #630
  • Nov 5, 2012 6:22am Nov 5, 2012 6:22am
Quoting evertontrade
Yes I think I understand your stance but I do not agree and I don't think carrying on will solve it. Best of luck to you!
But i agree outright trading is much better than BO because it is hedgeable and it is used worldwide but this has nothing to do with the betting argument ....
  • #631
  • Nov 5, 2012 6:40am Nov 5, 2012 6:40am
Sometimes BO brokers skew strike level based on momentum or clients bias but it works both ways , for example i am looking now at anyoption prices : EUR monthly strike is at 1.2833 but the EURO is now at 1.2767 , so if you want to make a monthly call trade ( UP ) the price is skewed against you but if you make a put trade on the Euro ( finish the month under 1.2833 ) you would be in the money already , anyway but the odds still against you , ie : you risk 85$ to make 70$ , hmmm ...
  • #632
  • Nov 5, 2012 6:52am Nov 5, 2012 6:52am
Now the monthly strike is at 1.2877 , spot price at 1.2778 , so if i make a monthly put trade i would be in the money 100 pips ....
even the weekly is skewed up , it is at 1.2811
  • #633
  • Nov 5, 2012 7:11am Nov 5, 2012 7:11am
In my opinion binary options can be a great option as a hedge to spot trading. However, many of the binary options brokers are unregulated, which exposes your binary options account to price manipulations and difficulties in withdrawing. Go only with regulated brokers
  • #634
  • Nov 7, 2012 8:57am Nov 7, 2012 8:57am
You wouldn't call binary options better than spot forex after you see this.

The top screen is their screen with sudden unexplainable spike, and the bottom one is the same chart in MT4.
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  • #635
  • Nov 7, 2012 9:07am Nov 7, 2012 9:07am
This is effectively my entire point.

Quoting Ishtana
You wouldn't call binary options better than spot forex after you see this.

The top screen is their screen with sudden unexplainable spike, and the bottom one is the same chart in MT4.
  • #636
  • Nov 7, 2012 2:08pm Nov 7, 2012 2:08pm
If you read the small print on most binary brokers sites you will notice that they never quote live market pricing, but rather something along the lines of the 'price that the market is prepared to pay for the option'.

Basically that means that they can adjust the price as they see fit. It's fairly well documented about the tricks that brokers (and not just ones selling binaries get up to). This post I found a while back is quite useful in highlighting some of the tricks they play.

Personally I think can you can use apply sound trading methods to binary options and come away with good profits despite this. However you need to keep under the radar of the broker by taking only small profits irregularly - i.e. spread your trading between several brokers and never leave money in your account.
  • #637
  • Nov 8, 2012 4:46am Nov 8, 2012 4:46am
Quoting Ishtana
You wouldn't call binary options better than spot forex after you see this.

The top screen is their screen with sudden unexplainable spike, and the bottom one is the same chart in MT4.
Ok so what , these spike will not effect you as there is no stop loss with binary options , and the settlement for each option will be taken from Reuters feed not from their charts and that what matters .... and as i said previously skewed strikes can work both way , so if they spike their strike price to the upside you have the chance to take a down put option from a favorable level ...
  • #638
  • Nov 8, 2012 7:58am Nov 8, 2012 7:58am
Well, it doesn't take a genius to realize that if it was you who bought a call at that moment, without that spike you would've won. I'll be pissed if that happens to me. As a matter of fact, it actually happen to someone I read on a forum. He put it quite a large amount of bet and that's what happened when he clicked the button. There is purposeful delay/stupid confirmation when you put a trade. That spike happened during that exact delay. He tried to sue the company but the company is as solid as Donald Trump. I thought to myself it couldn't be that bad. But when I saw the spike, multiple times, it is THAT bad.

Read their t&cs thoroughly and you'll notice they even reserve the right to sue you in your home country and seize your asset. Madness.

I agree with your point with Reuters. But what matters is what happens in between. And you have a point there taking advantage of those spikes. But most of us have better things to do than watching their chart all day waiting for it to happen.

Look I don't want nobody to go through what I did with binary options. I'm surprised that you're comfortable with price manipulation. If for the fact that they can manipulate price doesn't scare you at all, you either have big balls and deep pocket or you're one of the affiliates who got the share of profit whenever clients lose money.
  • #639
  • Nov 8, 2012 8:28am Nov 8, 2012 8:28am
Quoting Ishtana
Well, it doesn't take a genius to realize that if it was you who bought a call at that moment, without that spike you would've won. I'll be pissed if that happens to me. As a matter of fact, it actually happen to someone I read on a forum. He put it quite a large amount of bet and that's what happened when he clicked the button. There is purposeful delay/stupid confirmation when you put a trade. That spike happened during that exact delay. He tried to sue the company but the company is as solid as Donald Trump. I thought to myself it couldn't be...
fair enough , i don't trade with them nor i trade binaries that much as i said earlier the biggest con with BO is the Broker as most of them look dodgy and untrustworthy , plus IMO the 70% return is not worth the risk , i prefer 0-100 price model binaries ....and no i am not affiliated with them and i didn't recommend them in anyway ....
  • #640
  • Nov 8, 2012 1:40pm Nov 8, 2012 1:40pm
Anybody had trouble with BetOnMarkets.com?
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