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Why Binary Forex Options are better than Spot Forex

  • #661
  • Dec 4, 2012 12:09pm Dec 4, 2012 12:09pm
Great info. Thing I like about options is that you can use various strategies throughout 3-4 sessions per 24 hours meaning if you get a decent premium and theta etc you can recoup a big loss on spot fx where you will be stopped out. Need to read a few books on it before dwelling into it. Can you recommend me a fx options broker apart from GFT who are closing US accounts!
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  • #662
  • Dec 10, 2012 7:26am Dec 10, 2012 7:26am
That is true. I myself often have position that would have been stopped on spot fx, but at the end of New York Session still manage to give me a nice profit on binary options. Definitely read more about forex options. I heard that playing options alone can give you a decent income. As for the broker, I'm only giving people recommendations based on personal experience, so I cannot tell you anything else other than GFT and IG market. But I heard Nadex is worth checking out. Good luck!
  • #663
  • Dec 12, 2012 4:19pm Dec 12, 2012 4:19pm
I guess it can only be a plus especially days like today if you went short and got stopped out your binary option would cover the loss plus the premium only if you get a good price though.
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  • #664
  • Dec 16, 2012 4:28am Dec 16, 2012 4:28am
Quoting tar
Hi

For example :the price for GBP/JPY to touch 132 is 16/23.1 , if you think it will touch that level then you buy @ 23.1 if you are right the price will reach 100 if it didn't touch it will reach 0 at expiry and if you think it will not touch 132 then you sell short at 16 your risk would be 100-16=84 and your potential profit is 16 .
Hi there,

I have questions about your reply.. pls help to enlighten.. I am trying out on IG market and don't really understand the "buy/sell" numbers.

1) if you think it will not touch 132 then you sell short at 16 your risk would be 100-16=84 and your potential profit is 16 - This sentence I understand, but in this case isn't it we're risking a lot (84) more than the potential profit (16)?

2) if you think it will touch that level then you buy @ 23.1 if you are right the price will reach 100 - This sentence I am not too sure. So I think it will reach the stated price and I buy @23.1... IF the price did touch.. so what is my risk and what is my profit?

Sorry for being dumb...
  • #665
  • Dec 17, 2012 9:55am Dec 17, 2012 9:55am
Joejos what sort of premium rate prices you getting approx with IG markets on currency pairs approx say EU and GU for a daily option?
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  • #666
  • Dec 21, 2012 3:54pm Dec 21, 2012 3:54pm
I want to ask something about binary options execution.
what are the usual broker tricks there?

In forex, i can get re-quotes and slippage - is this the case with binaries?
  • #667
  • Dec 23, 2012 9:35am Dec 23, 2012 9:35am
I just called them an they states at time of call that they offer a price of 4 points for a daily expiration and 7 points for a weekly expiration on the euro! sounds to good to be true.
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  • #668
  • Dec 23, 2012 9:48am Dec 23, 2012 9:48am
Quoting Pipanator
I guess it can only be a plus especially days like today if you went short and got stopped out your binary option would cover the loss plus the premium only if you get a good price though.
forex options...in the US you can try NADEX.
AVT INVENIAM VIAM AVT FACIAM
  • #669
  • Dec 23, 2012 10:05am Dec 23, 2012 10:05am
Watch out for scammers though with the binary options community since its hot there are many of them popping up.

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  • #670
  • Dec 27, 2012 1:54pm Dec 27, 2012 1:54pm
Having trading at the old Umoo which became EZTrader, I found fixed return options fun, but not my style. I've been demo trading Nadex for a week and finally went live today with a tiny amount to play around with. The difference between Nadex and other OTC Cyprus/Euro based BO is night and day. Positive R:R ftw! Ability to close a trade at any time!

I'm currently sitting on a US500 (S&P March) Daily Binary short that is pretty deep in the money. The value and being in the money has decayed the price to $2.50. I"m going to wait it out and collect that last $2.50 for Max Profit. I sold at $78.50. ($21.50 risk/premium) That's a nice 3.65:1 R:R. Much better than the negative R:R you get from the OTC/Cyprus/Euro "Brokers".

I've gone 2/3 today on binaries 1/1 on Bull Spreads. The euro BO was $30 premium. I actually sold that one early for $65 right before the drop. The loser was stupid. I wasn't paying attention and chose an intraday binary instead of a daily. $22 loss. The intraday binaries go for 2 hrs so you need to adjust your analysis accordingly. Because of positive R:R, the loser was easy to absorb.

I also traded the same moves spot and did a Bull Spread on Pound that ended up $55 profitable for $11 risk. I posted that in another thread.

The Binaries remind me of sports betting but with the ability to collect when your team is up even though the game isn't over and also being able to get positive odds.
  • #671
  • Dec 27, 2012 4:10pm Dec 27, 2012 4:10pm
Quoting JR97
I'm currently sitting on a US500 (S&P March) Daily Binary short that is pretty deep in the money. The value and being in the money has decayed the price to $2.50. I"m going to wait it out and collect that last $2.50 for Max Profit. I sold at $78.50. ($21.50 risk/premium) That's a nice 3.65:1 R:R. Much better than the negative R:R you get from the OTC/Cyprus/Euro "Brokers".
So while I was away from the charts, the market rallied in the last hour over something about congress adding a sunday fiscal cliff session?

There's another downside to Nadex binary options. You can't set a trailing stop to lock in profit. You CAN set a take profit/limit order, however. Either way I ended up with a loss and missed out on $76 because I was holding out for $2.50? So after all of that I finished the day just $30 profitable. Beats losing, but still....
  • #672
  • Dec 29, 2012 6:11pm Dec 29, 2012 6:11pm
Still trying to determine if BOs are for real.... I do believe they are payed against the broker and subject to broker manipulation
  • #673
  • Dec 30, 2012 3:07am Dec 30, 2012 3:07am
BO = Binary Option but also = Body Odor. And a really stinky one.
It's a broker's dream come true. A take on a casino game with the odds heavily stacked in the broker's favor.
It's a scam that will separate the newbie fx trader faster from his money that outright positions.
  • #674
  • Dec 30, 2012 4:12am Dec 30, 2012 4:12am
Inserted Video



Sonic
  • #675
  • Jan 15, 2013 5:35pm Jan 15, 2013 5:35pm
Quoting webicknell
Still trying to determine if BOs are for real.... I do believe they are payed against the broker and subject to broker manipulation
Binary Options through anybody based out of Cypruss or calling themselves a "broker" are pretty much just casino bets.

Despite most of the uneducated comments in this thread, there are legitimate exchange traded binary options offered by the CBOE and Nadex. Unlike casino binaries, you can trade binary options like any other instrument enabling you to essentially close the trade before expiration to capture any accumulated profit or limit loss.
  • #676
  • Jan 16, 2013 1:04am Jan 16, 2013 1:04am
IN my point of view binary option is better than spot Forex because binary Forex is simple and safe trading option even in unpredictable situation that's why many traders prefer binary option to make profit.
  • #677
  • Mar 19, 2013 9:18am Mar 19, 2013 9:18am
BetOnMarkets.com is by far the best binary options broker with the widest options and an extremely user freindly platform. Worth trying by all interested in binary option betting on forex, commodities, indices.
  • #678
  • Apr 19, 2013 7:59am Apr 19, 2013 7:59am
Options in general,not binaries(if you like them its mostly better to "construct" them by your own) ,but plain vanilla long straddles are a very good way to trade for poor retailers ....
  • #679
  • Apr 25, 2013 3:51am Apr 25, 2013 3:51am
NADEX is the bomb!
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #680
  • Edited 2:52pm Apr 26, 2013 2:41pm | Edited 2:52pm
Quoting Sebastiaan76
{quote} 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...
Not sure about IG but this post caught my eye since I was also searching for a legit binary option broker, might as well share some of the research here. Seems like GFT and Enfinium are total bucket shops too unfortunately.

Here's some links I digged up on Enfinium -
Inserted Video
(hilarious but sad video), http://www.forexpeacearmy.com/forex-...d-90-days.html and GFT - http://www.forexpeacearmy.com/public...rex.com?page=3, http://www.forexpeacearmy.com/forex-...l-markets.html.

Also stay the hell away from "http://www.spotoption.com" white labels like Banc De Binary, TradeRush, 777binary, etc. They're all domiciled in Cypress. They may even claim to have offices in "respected" countries like UK or US but after abit of digging every one of these addresses are "virtual offices" (which are mailbox services that come with phone support and mail forwarding). Imo they're might even be front companies set up by the same group of people. Not to mention there's posts all over the place about these scammers not letting you withdraw if you make a profit. The consensus is If you lose money like most of the forex crowd, they'll leave you alone. But if any of you are profitable traders and are considering these companies forget it. (don't have links but there's some good threads on the trade2win forums)

Edit: didn't realise FF automatically embeds youtube videos.
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