Binary options for dummies

[moka2]

Hello,
For those who want to know more about binary options trading, I try to provide a guide which helps them to understand binary options trading.

Type of bets

A- Hi/Low
In this option if you believe from your market analysis that the price will close below the current price on time expiry then put your bet "Low" and "Hi" in case you believe that on expiry the price will be higher than the current price.

B- One Touch (Touch/No Touch)
In this option if you believe that the price will touch the target price before the option expiry then put your bet "Touch" and "No Touch" if you believe that the price will not touch the target level before the option expiry.

C- Boundary Option "In/Out"
In this option if you believe that the price will be between 2 levels on the option expiry then put your bet "In" otherwise put your bet "out"

Expiry Time
For each of the above options there is an expiry time, there is intra day expiry time its 30 min or 1 hour, and there is at day end expiry where the option is allowed during the day long it expires 1 hour before the close of NY session.

What to trade in binary Options
Binary Options include Forex, Commodities, Index, Stocks, Gold, Silver.

Hope this helps!

Just check where these brokers you gus are promotimng based and remember you are trading an OTC product not regulated exchange traded product!

 

[davidfielder]

Hi Morgan2074,

Binary options are a great way for beginning traders to learn more about the market.

As stated by others, you really need to know what you are doing or you can lose a lot of money.

And here are some brokers that are regulated and you receive a contract for your purchase:
Chicago Board of Exchange (CBOE | Chicago Board Options Exchange)
North American Derivatives Exchange (Binary Trading | Binary Trading Options | Nadex)

You can also go many sites and trade without a contract. These sites are harder to regulate, but reputable sites will do the following:
1. charge no fee for purchasing binaries
2. give at least a 70% return on "wins"
3. offer a partial return on investment of around 15% for "losses"

There are other sites known well in the business:
EZTrader
Tradesmarter


As an aside, I work for a company which partnered with a site called Bull Options. I can assure you that we take great pains to compensate traders for any technical problems that could occur on the site. Trading is completely in your hands.

Good luck!

As far as I know BULLOPTIONS went out of business about 15 minutes after they opened

 

[Martha Garcia]

Hi guys i recently found a new broker call Vault Options, good customer service and all that, but what caught my attention was their instant withdrawals policy, so i gave it a shot deposit the minimum and won a few trades. i place a withdrawal request i got my money right away, same day.

Have you guys hear from Vault Options before?

 

[hedgemaster]

They have only 70% or so payouts that means lose 100% when you lose make 70% when you win...trading is hard enough with only get 70-75% profits on risk

if you lose 10 when you lose and make 7 when you win - then you have to win 6/10 to basically breakeven - at 7 you start to end up net almost your risk - at 8 out of 10 then you are making more than your risk per trade.... much better going with price ladder binaries at nadex if in USA (plus its an actual regulated exchange) - or GFT or IGindex if outside UK - ie i did a binary trade on AUD/USD yesterday on nadex and made 508% in 10 minutes - the best you can hope for on vault and others is a mear 70% return on risk or if lucky 90% return on risk but never 100%+ return on risk

Don't matter how fast i can withdrawal it if the payout is lower than the risk then i can't withdrawal it fast enough....

 

[hedgemaster]

Just check where these brokers you gus are promotimng based and remember you are trading an OTC product not regulated exchange traded product!

yup stick with nadex/cboe/cme for regulated binaries

really cme ones are just weather so not applicable to retail traders
cboe has no volume at all
nadex is built for retail trades regulated exchange and has plenty of volume

 

[hedgemaster]

You will see from my previous posts I am a huge fan of Binary/ Digital Options, but only certain platforms. I do not like the up/down for max 85% model.... Its a gamble and very rarely can you get your money back.

You mentioned an option builder.... I bet you only get a max of 75 or so % return offered.

If you are hedging with a long fx position why don't you build your put option with PYXmarkets which is a very processional version of a binary platform. The risk is fixed as all binaries but the returns are multiple... They say you can get a return of up to 2000% from each trade but I have only ever seen around 900% still that beats 85%. You choose the range you believe the market will close but can also sell out early to cut a loss or take a profit.... Its awesome in comparison to many others I have used.

It incorporates the best features of all these platform such as IG, Bet on Markets and GFT but offers higher returns.

Can get 1900% return trades on Nadex IG etc..

 

[moka2]

hedgemaster
The only issue I see with NADEX is is it truely an exchangelike CME or is it just IG as a market maker with word Exchange in it's name
However I agree with you that Nadex IG is much better than those hundreds of dodgy lookibg Binary options brokers mushrooming out everyday!
I wish though CME/ CBOE true exchange traded Binary volume pick up and more Binary become available on these large exchanges.
Alternative (for retails also) is to construct a BInary payout using Vanila Exchange Traded Options
Advantage of that over NAdex is
Thousands of choices
Broker is likely to be under SIPC insurance
Others on this foroum will dismiss all what I am saying just becasue they have vested interest

 

[pobednik]

Hi guys, another thread that I need, God I feel so lucky today )) initial posting, very first post - very very useful for me ! anyway, I have posted this thread about return rates for different brokers and huge differencies..anyone with experience please join ? I have registered on some of those platforms but haven't deposited, would like to hear some experience..

 

[moka2]

impactbinary
Which exchange/ country are they exactly a "public listed company "
care to share?
All it say is EZTrader is owned by WGM Services Ltd., with offices at 48 Themistokli Dervi Avenue, Nicosia 1066, Cyprus.
Do you work for them?

 

[moka2]

How are the better?
When your own country regulator does not approve of them
And for a newbie his/ her money protection should be most important
It sound like you just wish to promote them bliendly

 

[moka2]

SO Rachel you are an" investment consultant " which country are you regulated in? are you a CTA? or Financial planner
It is "interesting" those who are praising this product are "new members"

 

[anthonytee]

In my opinion success in binary options come by choosing the correct broker, i test many broker before i found Vault Options, and let me tell you these guys surely now how to make the difference, excellent service and support, but their very best feature is the instant withdrawals, that's right in Vault Options you get your money right away.

in vault options, which broker is more helpful to earn more profit to you?
any suggestions?

 

[dbrawner]

OK, i'm a newbie to binary options though have reasonable success in futures, fx, and regular options trading.

Binaries sounded like a good deal until I looked at the ratios. So I'd like someone with experience (and long term success) to help me out.

It seems the risk (85% to 100% of your "bet") always exceeds your reward (typical seems to be 70%). How can anyone make money in the long run even using the various martingale strategies I've seen lately (you know, start with $12, bet $28 if you lose, bet $70 if you lose again, $150 if you lose again...) With a negative risk/reward you are eventually going to lose everything unless you have a superior win/loss ratio (greater than 55% just to break even over time).

While this might be attainable in the binary market (??) it seems difficult to achieve in the regular markets consistently over time.

Also, not all brokers offer a less than 100% loss, and not all brokers consider "at the money" to be a wash or positive outcome. Many I checked consider anything less than a tick in your direction to be a loss. Thus driving down the odds of a win.

Broker issues aside, can anyone comment with real life experience consistently earning a bragable income in Binaries? I'm not talking marketing hype, or short term performance during hot market trends, I'm talking consistent, long term, net positive spendable income.

Thanks for your input...

Dave

 

[davidfielder]

Great question
Martingale doesn't work unless you literally have endless depth in terms of capital
Because of the cap on the trade size, you will eventually lose it all and need to start over

But to be honest, it doesn't need to be some silly disproved strategy
If you simply keep above around 56-58% win ratio - you are making money
So I prefer using a very nitpicky strategy
Only opting for true breaks and not touching those iffy ones
It's not so different from what I do with stock picks for longer durations or mid term forex trades.

 

[dbrawner]

Great question
Martingale doesn't work unless you literally have endless depth in terms of capital
Because of the cap on the trade size, you will eventually lose it all and need to start over

But to be honest, it doesn't need to be some silly disproved strategy
If you simply keep above around 56-58% win ratio - you are making money
So I prefer using a very nitpicky strategy
Only opting for true breaks and not touching those iffy ones
It's not so different from what I do with stock picks for longer durations or mid term forex trades.

Totally agree with the response on Martingale strategies, all losing props from the start.

But even a consistent 58% winning strategy will likely only provide a nominal to modest return on investment with the risk/reward presented by even the most generous binary platform I've investigated.

David, are you implying you make greater than a 10% annual yield from your binary account? Not trying to pry but 10% ROI is my arbitrary yet personal threshold for investing my time and money into anything.

Thanks,

Dave B

 

[davidfielder]

I have been trading binaries for 2.5 years now on and off.
I am profitable. I prefer leaving it at that.
And also, it's taken me just as long to find brokers that pay out properly.
There are a few. Not all though
So please choose wisely and ask around - don't take my (or any 1 person's) word for it

 

[davidfielder]

Oh, and 1 other thing.
If you do the math, and I am sure you can, then 58 may be very nominal gains
But 60% is already well above your target amount
I mean - well well above
Assuming you increase trade size eventually
I don't recommend touching your trade size for 3-6 months minimum
But I am fairly conservative in my bank roll management

 

[BobbyBB]

Personally I think binary options represent stunningly bad value for money and you have to have a serious edge to overcome the spreads.

Which is why they're pushed so much to the retail trader.

Anyone who knows what they're talking about keep well away from Binary options because they're such bad value.

Plus, look at where all the binary option companies are located....

 

[davidfielder]

O FFS
This again

 

[dbrawner]

Oh, and 1 other thing.
If you do the math, and I am sure you can, then 58 may be very nominal gains
But 60% is already well above your target amount
I mean - well well above
Assuming you increase trade size eventually
I don't recommend touching your trade size for 3-6 months minimum
But I am fairly conservative in my bank roll management

Thanks David,

As you probably realized I am nearer to ultra conservative in my approaches and expectations.

Your responses have been welcomed and I shall take them into consideration as I decide whether to expand my portfolio into binaries.

Also, thanks for keeping it real, as many of these forums tend to become little more than soapbox rants...

Dave B