Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Soultrader

Introduction to Binary Options

Recommended Posts

What are Binary Options?

"In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange).

 

For example, a purchase is made of a binary cash-or-nothing call option on XYZ Corp's stock struck at $100 with a binary payoff of $1000. Then, if at the future maturity date, the stock is trading at or above $100, $1000 is received. If its stock is trading below $100, nothing is received."

 

Definition taken from Wikipedia.

 

Resources:

 

CBOE Binary Options Introduction Page

Share this post


Link to post
Share on other sites

I appreciate you starting this thread. Although this type of trading opportunity has been around for a while I suspect it isn't in common usage yet.

 

The importance to Uk-based traders, compared to CFDs for example, is that there are no tax implications for us.

 

I'm hoping to start discussions on the merits, or otherwise, of various tactics to take advantage of BOs.

 

In the UK there is one main broker for these as far as I can see. As I am not sure of the posting rules I won't post a link but they have a US brokerage as well. I've attached an image of the range of markets they offer. This won't interest any of the senior members here as they are basically a retail broker. For my purposes they are adequate.

 

At present I have based my BO trading using the techniques that I developed over 3+ years of spot FX trading ie Support/Resistance, price action patterns etc. From what I've read so far in the few days since joining this forum I still have a lot to learn.

 

If I can find some insights into the less risky strategies that can be applied to BOs and add to my knowledge of markets overall I will feel myself fortunate.

 

I look forward to any information that you guys would like to impart.

 

Thanks

 

Peter

--------

5aa70ef9f2f86_bin_o03Jul.082009.gif.468d07abf19878ff963ce1013357abd4.gif

Share this post


Link to post
Share on other sites

Hey Peter

I have seen you over at Forexfactory a lot over the last three years. Welcome aboard mate as your contributions there have always been very helpful and respectful.

All the Best

John

Share this post


Link to post
Share on other sites
Hey Peter

I have seen you over at Forexfactory a lot over the last three years. Welcome aboard mate as your contributions there have always been very helpful and respectful.

All the Best

John

Hi John

Thanks for the welcome but looking around I'm feeling slightly out of my depth here. It's a bit different giving basic advice to less experienced newbies to trying to understand the mechanics of Market Profile trading and/or the Wyckoff stuff.

 

I knew I had a lot to learn but it's like starting all over again :confused:.

 

Pete

Share this post


Link to post
Share on other sites

Yes I understand that completely...in fact I would say thats the best attitude one can have towards more open learning...

You will be surprised how quick you will pick it up...the people on here are very helpful and respectful towards those that want to learn...as you were on Forexfactory...

 

All the Best Peter and good luck

John

Share this post


Link to post
Share on other sites

Peter,

 

I know your post was a long time ago but I have been looking into binary options here of late and would be interested in any additional details of your trading. From the little research that I have done they have me skeptical. It just seems so much like throwing your bet down on the table and hoping for the best. Atleast when I put a traditional options position on an equity I have the option of adjusting my position. Not quite sure how I feel about the all or nothing aspect of binaries.

 

Don't mean to sound negative here as I don't have a full understanding of these products yet. Any insight would be great.

Share this post


Link to post
Share on other sites

It has been two years since this thread has seen any action. Does it really deserve to be a sticky thread? Keeping it a sticky means only one genuinely active thread in the options section is viewed on the home page rather than two. Wouldn't it be better to show active threads rather than long-dead sticky threads?

Share this post


Link to post
Share on other sites
So guys, where do you recommend trading binary options then? I've seen a couple of sites but prefer anyone with experience to give their tuppence worth.

 

Yes...Optionmint and Banc De Binary... Both solid. Optionmint pays faster. Probably one of the better sites ive traded on

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • ...hallucinates.... Student: “What if we gave the monkey LSD?” Guru: “The monkey already did LSD”
    • Question: To those that had/have cancer, what were the signs that made you think “something is not right here” to make you go see a doctor? Answer: So, 5/25/2018, I woke up, got ready for work, and as I walked to my car, I started gagging. Like something was stuck in my throat and I needed to clear it. And then it went away.   But 10 minutes after that, I was T-boned at 40mph on the driver side door. But what made me see a doctor was while my muscles felt better and bruises were going away, the gagging still continued, I started having fevers, my neck felt swollen, I was having such a hard time breathing, and I'd have random sharp pains in my chest, but not from where the seat belt saved me.   2 weeks after the accident, I finally see an urgent care doctor, who looks me over, tells me I'm fine, but luckily requests a neck X-ray. And I ask for a chest X-ray, which he rolls his eyes but let me have (most of my pain was in the neck, so I understand).   The very next day, he calls and says “So, that chest X-ray shows there's a 4 inch mass on your heart and lungs, and your lungs have been filling up with fluid, as well as in your pericardial (heart) wall. We need you to come in tomorrow.”   Turns out the big mass, due to the accident, caused my heart and lungs to tear and fill with fluid, the swollen neck and gagging was caused by 2 metastasized tumors, and the fevers and weight loss were symptoms. Stage 4b Hodgkin's Lymphoma.   But thankfully, we went very aggressive with chemo (and had a lot of bad side effects that don't normally happen to patients), and now I'm about 16 months cancer-free. Yay lucky X-rays! Rachel Jurina, Quora Source: https://www.quora.com/To-those-that-had-have-cancer-what-were-the-signs-that-made-you-think-something-is-not-right-here-to-make-you-go-see-a-doctor   Profits from free accurate cryptos signals: https://www.predictmag.com/  
    • As a man, the reality of life is the harshest part. I don’t mind looking older or becoming weaker over time; it’s nature.   Have you ever heard that the only people who will be loved unconditionally are women and children? Men will only be loved as long as they can provide until they are no longer needed. It doesn’t matter if you already did your best to get your kids to the best school or get the best things for them, if you stop before they’re done with it, there will be no thank you. The only thing they will remember is that they have to quit school at 15, ignoring all the previous 15 years of life you provided for them. The only people who will accept you, no matter what, are your parents. But in this situation, you might be that ungrateful child.   EDIT: Wow, I didn’t think this would get so much attention.   For those who disagree, I can only say that everyone has their problem. If you don’t get the chance to face such a thing, be grateful. Remember, sometimes what you throw in the garbage is something that someone wishes ever to have.” – ElZee, Quora   Profits from free accurate cryptos signals: https://www.predictmag.com/    
    • The good thing i had noticed so far is that the traderpot value is also on the rise..
    • yup its a gradual rollout the right way in my opinion, its really good and its exciting for the sto in 2027
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.