Binary Options - What are they and how do they work?

[aminlakhani1]

Binary options is system of trading where options are used for trading as you as a trader choose the right option that will hit on certain time frame.

 

[Drew-nn]

Another matter that I have found out is that their data feed gets manipulated by themselves.
If you run their data next to what we are used to in forex, you will clearly notice this !!

You're right, but you should know that they can't do it for traders who bet for long term, they generally play with prices for gambler.
I actually hate binary options and most of brokers are scam, so if you want trade options do it with your forex broker, avoid binary options broker.

 

[fxelite3]

my inbox has been flooded with binary options offers lately it seems. I read through the thread but still a bit unclear. Would everyone say to stay aaway or is it worth investing in?

 

[Pharaoh]

Read this:

https://www.forexpeacearmy.com/fore...raud-advisory-alert-about-binary-options.html

Then take your money and flee!

 

[tomjersey]

I've been trading only binary for about 7 months. I've placed dozen of trades. I earned good money once I worked out my own strategies and figure out how the binary trading platforms works. The problem is I would never recommend to invest in unregulated binary platforms whatever they say I tried 2 unregulated platforms (beeoptions, tradehits) out of 3 and they haven't paid me the profit. Both of them own me £14k profit. They make excuses read https://www.forexpeacearmy.com/fore.../33207-beeoptions-doesn-t-pay-out-profit.html
I'll be speaking to the lawyer soon. Hopefully I will get profit which I made there

I tried few regulated different platforms like Optionfair, TopOption, OptionTime, AnyOption. They pay out the profits.

If you start making profit binary companies will start blocking your trades. You want have 100% execution. You will see messages like action failed, option suspended, price has changed. You will have trade limits (OptionTime). Some trading platforms manipulate the prices during trading (spotoption platforms, anyoption). Many times when I place a trade for 15min they lower the price. I can place another trade in the same direction but I cannot place it in the opposite direction for the same time (option suspended, low liquidity, action failed etc)

They manipulate slightly the price during trading because if lots of traders place the same position at the same time, the same direction they will lower or higher the price. Compare Anyoption to 24 option or any spotoption platform to 24 option. When there is lock in time 5 min before close you are not able to place any trade. Suddenly the price jumps in one direction to make it the same as on 24 option

OptionFair, 24option (any techfinance platform) doesn't manipulate the prices during trading but they except or reject trades after 4-5 sec very slow. You will see price has change if for instance you place a call eur/usd 1.35000 and the price within 5 sec is more than 1.35000 if it's less it will always accept the price

I noticed that once you click call or put on spotoption platforms the price changes slightly so you are on the worst position. For example the price is eur/usd the price on 24 option is 1.35000. If you click call ( don't approve yet) another window pops up the price will change to 1.35005 while on the 24 option is still the same. At the end of expiry time they will close the same. If you trade short time 60 sec, 2, 5 min it will effect your trading. Basically you will loose unless the market is quite volatile

I've made few clips. I could post them here if it's possible.
Soon I place them on youtube so you can see.

This is my experience with binary option platforms

 

[bigdog93]

my inbox has been flooded with binary options offers lately it seems. I read through the thread but still a bit unclear. Would everyone say to stay aaway or is it worth investing in?

It's definitely worth your money. Just look for a good broker like Nadex(US) and spotoption. Also, if you invest some money in a good strategy like the one in binaryholygrail com, then you will get profits. It's just a matter of having the right tools

 

[fxstrategist]

Are binary options really a safer way to play the markets? They say that you only pay the premium and that's it, you don lose more than that. But isnt it the same thing as putting a stop loss on an open Spot Forex position?

 

[Pharaoh]

Are binary options really a safer way to play the markets? They say that you only pay the premium and that's it, you don lose more than that. But isnt it the same thing as putting a stop loss on an open Spot Forex position?

It's worse. In binary options, profit and loss are fixed with a negative risk-reward ratio. In forex, if you are lucky enough to enter along a good trend, you don't have to close your trade and can make much more than the initial risk dictated by your SL.

Add in the troubles so many traders have reported getting profits (or even initial deposits) back from binary companies, and the best suggestion is to avoid the whole binary option concept like the plague.

If you want to trade forex, open a retail forex account or trade real currency options (NOT binary options) on a regulated exchange.

If you want to gamble, the risk/reward of betting on red or black on a roulette table is better than binary options. Go to Las Vegas. Look for that big pyramid on one end of the strip. Tell them that Pharaoh sent you.

 

[tomjersey]

Are binary options really a safer way to play the markets? They say that you only pay the premium and that's it, you don lose more than that. But isnt it the same thing as putting a stop loss on an open Spot Forex position?

see this


and this


They seem to do what they want once you start making profit. Manipulating in front of your eyes.

 

[Jussar]

With Binary Options you don’t risk losing all your money in your trading account compared with the Forex market, I think this is a good reason to use Binary Options over Forex trading, but still people prefer Forex trading, is there something I am missing?