Absolute nonsense. No single party on the other side of the trade (should it really exist) is continuously going to risk such volatility.
There is NO central exchange for the majority of these unregulated brokers. They make the market period.
The only exception to this rule as you have uttered in your ramblings is the play of probability.
Bank gathers the fortunes from the pubic and runs its business till there is a bank run.
Binary options with 800% payouts will never be regulated by an authority with "regulated neurons" capable of thinking rationally unless they agree to the probability argument but that is still not discounting the fact that no central liquidity provision system exists for the majority of option gaming products.
So Mr Einstein of "How I became a Billionaire in 30 days" book, the mathematical weightage you are giving to the potential wins over losses in this scenario lies within the confines of the gambling products and not from money management risks overseen by regulated exchanges.
I am fine with these products advertised as gambling games with some edge given the customers. It needs to if customer retention is of some importance.
Oversell your childish Bull Sh**t to some one else.
Do regulated brokers act as counterparties 100% yes
There you go...so if you coampre this to tru exchnage which means exchnage makes sure that there is margin money up front and margin has no conflict of interest with any party
Better for the punter is it not?
"Sure banks fail and you get pennies on the dollar. Not sure how insurance works in those cases"
In US and Australia money in bank is protected by federal govt.
If in US broker fails ( as a corporate failure ) SIPC is there in AUstralia for ( equity holding only) ASX investor Gurantee fund i sthere and so in UK
If CYSEC broker fails ====?
We are not talking about regulated FX or Futures firms as they are not covered by above mentioned insurance
For the 1000th time
I DON"T CARE ABOUT STOCK TRADING
Binary options, forex, and other currently OTC products that are THEORETICALLY constructable/tradable via exchanges is the argument
How the hell can you comapre and unregulated broker in bianry options to NYSE????
They have nothing to do with each other
So the comparison is ONLY:
Do i try and construct a binary options strategy via VANILLA options on an exchange
OR
Trade with an unregulated brand?
Answer will overwhelmingly be the unregulated simply because 99.9% out there don't know how to trade proper vanillas
On to the next point, CYSEC:
CYSEC DOES have insurance. Up to 30k USD if I remember correctly
So stop it already. And this DOES cover forex companies
Learn the facts
I don't care about stocks - it's not an issue here as I am not arguing about that.
Forex/binaries = OTC vs non OTC forex/binaries