binary options

[alan5616]

Hello folks,

I've posted this question in a few of the other threads so I hope I'm not considered a spammer. It's just that I don't see my concern addressed anywhere in the forum.

I'm a full time trader in stocks, futures, fx, and options; but I'm a newbie to these binaries.

What has me stuck is the negative expectancy built into the system. A typical max loss seems to be 85-100% of the "investment" (bet, wager, etc.), a typical max win seems to be 70% of the "investment". This is a 15-30% negative expectancy and would require a 55% win/loss ratio just to break even over time.

Now the system sellers and all report much higher win/loss ratios but in the real world, over time, these high win ratios tend to break down. At least that's what I've observed since 1983.

Can you really make a reasonable return on investment over time with Binaries or are they just another form of entertainment like casinos?

Thanks,

Dave

Dave,

May comments may be obsolete now as, I gave up financial trading some 7-8 months ago. However, at that time, my biggest concern wasn't unrealistic claims by marketers but, the security of funds deposited with those companies who offer trading on binary options.

To the best of my knowledge, few of these companies are regulated and, even those that are, specifically exclude binaries from the compensation guarantee required by their regulatory body (e.g. FSA in UK). I remember contacting one company, in Europe, to ask if they were regulated. Their reply was that they were registered in the EU but, weren't regulated.

Things may have changed in the past few months, but, if they haven't, be wary of depositing funds with some of these "bucket shop" type operations. It's no good making 300% ROI in a week, if you're never going to get the money!

 

[moka2]

Dave,

It's no good making 300% ROI in a week, if you're never going to get the money!

Spot on observation
but many don't seem to care about this point understand it! they get mesmarised by
1) quick expiary
2) simple latform
M

 

[moka2]

Hello folks,

I've posted this question in a few of the other threads so I hope I'm not considered a spammer. It's just that I don't see my concern addressed anywhere in the forum.

I'm a full time trader in stocks, futures, fx, and options; but I'm a newbie to these binaries.

What has me stuck is the negative expectancy built into the system. A typical max loss seems to be 85-100% of the "investment" (bet, wager, etc.), a typical max win seems to be 70% of the "investment". This is a 15-30% negative expectancy and would require a 55% win/loss ratio just to break even over time.

Now the system sellers and all report much higher win/loss ratios but in the real world, over time, these high win ratios tend to break down. At least that's what I've observed since 1983.

Can you really make a reasonable return on investment over time with Binaries or are they just another form of entertainment like casinos?

Thanks,

Dave

IMO
Short expiary , and the factor you mentioned = Casino game

By the way how would these calculations work out in case of a Binary pay out mimicked by using Vanila Options
DJX cash settled option Expiary = 1 week
ATM Call buy and Sell 1 strike above
DJX 144.21
145/146 cal spread was showing cost of 0.52
Max WIN = 100 (Profit = 100-52)
Max Loss = 52

 

[alan5616]

Really sorry to hear of your experience. Unfortunately, binary options brokers are unregulated or, were the last time I looked.

Spot forex isn't much better. If you use a market maker or spread bettor, you'll get cheated on a regular basis. The BS that these *******s spew out about only making their money on the spread, is a complete pack of lies. Imho, most of them are as straight as a corkscrew

 

[BOP]

I carried out some reviews on some of the major signals providers which you can read about here - What is certainly true from the above comments is that most win rates will break down on systems over time. If you happen to catch a good winning run then you can make a good profit. However will all trading you need to know what you are getting yourself into.

Unfortunately most traders, be they of Forex, stocks, binary options .. anything really... will have unrealistic expectations and therefore are doomed from the start. In my opinion most signal services trade too frequently simply to entertain their subscribers (and the brokers pander to this constant need to trade with 5 minute, 60 second contracts etc).

I once mentored a guy who couldn't understand why I didn't trade more I only placed one weekly trade on betonmarkets per week and had a strike rate of something like 85%. I tried to explain that trading is not about time spent in front of the screen.. it is about making money and too many people fail because they forget that from the outset.

Sorry I should have mentioned.. I think whatever platform you use you can approach it from the angle of a casino player or a trader. But it is much harder to be a trader on the short timeframe stuff.

 

[gerryg]

Let me add my 2 cents to the BO topic. After long investigation I noticed that probability of going to scam of binary option broker is increasing with time of it's operation. Now i focused on newly opened optiotrade.com. Currently it demonstrates quite positive results, but I would like to check my suggestion on this binary option too. Let's see how long they will last out.

 

[Myanne]

Hello All

 

[Myanne]

I have a regulated European broker looking for FX and binary high quality leads. We are currently looking for leads buys and CPL advertising deals. interest is Russia, Arab, Australia and New Zealand, Canada, Sweden, Norway.Will run a small test (preferably get a sample too) and if lead quality is good we will increase deal size as we are looking for long term leads providers.

send me email to [email protected]

 

[moka2]

Regulated European! h........m which country?
with respect to Australia if you wish to market a financial product you need a AFSL
Otherwise ASIC will be back on you to GO TO JAIL card

 

[marcadam123]

There are a lot of dodgy brokers out there, but providing you stick to those regulated by the major regulators you should be fine. The other thing to be cautious of is that most of the unregulated brokers will actually lie and say they are regulated, so you'll want to to check on the CYSEC website or the local respective regulator.

 

[moka2]

Regulated by who and what Client Money protection? CYSEC does it provide comprehensive insuracn e like FSA in UK?
For OTC products like these including FX or even Futures it is really hard to find a client money protection May be only FSA that too check with UK insurance first
A us regulated binary broker like Nadex comes under CFTC but not SIPC!
So NO cover if it goes broke! then what
For best protection the only option ( no pun intended) is
1) "Construct your own BInary by using Exchange Traded Options on any major exchange make sure broker is covered under SIPC / FSA for client money safety also this has so many advantages like transparency , direct market SIMPLE FACT AN EXCHANGE DOES NOT MIND HOW MUCH YOU WITH WHERE AS A MARKET MAKER MODEL/ BOOKIE WILL BECUASE THE IS LIKELY TO LOOSE WHEN YOU WIN
AS SIMPLE AS THAT

2) Second best CFTC regulated or ASIC or Major EU conutries or even SIngapore

 

[NVP]

get all this garbage multiple binary posting off the damn site ..............jees 1 thread is enough for this subject .........and thats still 1 thread to many

N

 

[scruise]

Binary Options

It is interesting how few people post about binary options. Perhaps it is because these options cannot be manipulated or controlled by anyone. What we think or what we say cannot influence a stock price.

 

[epayne]

An Apology from Michael Freeman

Hey guys, what do you think of this apology from Michael Freeman about OneTwoTrade platform on binary options trading? He apologized for blacklisting OneTwoTrade on his website but apparently he misjudged this platform.

http://youtu.be/-K0Kq4NLUhc

 

[trader-steve]

binary brokers ive used

before starting trading with a british company i did use binary options that were cysec regulated (or not really regulated) as we know it. however two option brokers i used gave me no trouble with withrawals and i still use them when hedging my real positions.

Iq option. Easy to use low deposit and low amount per trade, always paid me

optionfair. same as above higher min trade but also have a forex platform also paid me no problems, and just to add with optionfair i tok a bonus with all the conditions attached but they still let you have your deposit back and segrigated profits.

Sounds stupid but these two shoddy regulated companies i have had no problem with. Iq do weekend trading to, i use it for a laugh but do make money and withdraw.

i use

 

[Webforecast]

before starting trading with a british company i did use binary options that were cysec regulated (or not really regulated) as we know it. however two option brokers i used gave me no trouble with withrawals and i still use them when hedging my real positions.

Iq option. Easy to use low deposit and low amount per trade, always paid me

optionfair. same as above higher min trade but also have a forex platform also paid me no problems, and just to add with optionfair i tok a bonus with all the conditions attached but they still let you have your deposit back and segrigated profits.

Sounds stupid but these two shoddy regulated companies i have had no problem with. Iq do weekend trading to, i use it for a laugh but do make money and withdraw.

i use

Thanx.