What do you think about binary options?

Hi Folks,

I would like to hear your opinion about binaries trading. To my taste it is more of a gambling game rather than trading per se. Conditions are generally worse than on FX, even the way binaries brokers do ad campaigns is absolutely different. I tried it once just for fun.) Time factor contributes to adrenaline generation, so I wouldn’t say that this is for me. I’d rather stick to good ol, familiar FX trading. But this is me.

Personal appeal to binary options brokers representatives. I kindly ask you not to post your advertising here, only facts.

Bots posting for money, please also go home) It's quite simple to spot you.

Thanks in advance to everybody who will share their opinion.

Looks like nobody has given it any thought)

Have you tasted this gambling or just having fun or doing tp with this thread..if you are technically sound in financial markets then nothing is gambling..every now and then a tom dick harry POPS up and start there thread with this is gambling that is gambling..

I've made money quickly with binary options before but i wouldn't recommend it unless you use weekly expiry and price action.

I don't think that binary options betting are very different than classic forex trading. The problem is that you must have very well risk management system. Much better than in forex. I developed a software for fx option valuation and I trade for last year's summer time. My first deposit evaporated because i DID NOT USE any risk management. The software can indicate good opportunities but if your stakes are too big, you surely will be another bankrupt person.

When you trade on forex there are 2 main factors: price of entry and timing. When you trade binaries than time factor is much more important. If you a wrong on timing than you can loose your bet even if direction is right.

Thanks to RBlackburn and Ulele for reply.

Not a good option to trade binary options. Return is limited even if the trade is win.

I agree with the statements of MaxFX. Time is really important, binary price is changed drastically if the volatility is changed. You might get late or lag entry with bad price, so RR become an issue with limited return.

My 2 cents.

hi everyone
it is not problem to earn money
the problem is broker
they never want to send your profit and deposit

i have a robot
i can win %50 in two days
but it takes to withdraw one month
but at least ioption is better amoung the worst

From one side the advantage of trading binary options is in its simplicity. Traders only need to select if they believe that an asset will rise or fall in price upon expiration. From the other side it resembles playing roulette so much.

I think it's all been covered but the reason why binary options are bad are as follows:

1. With standard CFD trades - you only need to care about the price. ie, I believe EURUSD will go up by 50 pips before it goes down 50 pips. With binaries you need to have a view like "I believe EURUSD will go up by 50 pips before it goes down 50 pips within the next 60mins." It's an extra layer of risk that you have no way of measuring.

2. Binary options are basically a product created by a broker rather than an actual financial instrument on the open market. Although this isn't a problem if your only trading small amounts - Because the strike price and expiry of the options are basically whatever the broker says they are, it's just a market that has been created to screw retail traders.

There is plenty of opportunity in standard CFD/Futures. No need to go to options.

[quote=TraderLT;68481932. Binary options are basically a product created by a broker rather than an actual financial instrument on the open market. Although this isn't a problem if your only trading small amounts - Because the strike price and expiry of the options are basically whatever the broker says they are, it's just a market that has been created to screw retail traders. There is plenty of opportunity in standard CFD/Futures. No need to go to options.[/quote]
That's not true, there are some binary options exchanges out there too

I gave the options a try on demo other day. Not bad.

Risking 100 brings 80 and price does not have to move 8 pips as it would be required for 10K trade. All you need a fraction of a pip in your direction.