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

FreddyFX

Sergeant
Messages
366
VERY TRUE !!!!!

My view is that if I request a demo from a broker and withing a few hrs. I get already a salesperson on the line asking me when I plan to fund, I tell them NEVER.

At times though I do research work for others and avoid any sales pitch by filling out a wrong phone number, lol.
 

Pharaoh

Colonel
Messages
19,813
Using a disposable email address and giving a fake name and number to brokers when signing up for demos is something I learned to do a long time back. I don't mind one phone call asking what my plans are, but some brokers are SOOO damned persistent.

One issue - a lot of Binary Options brokers only offer a demo if you also have a funded account. I personally consider any broker with a policy like that to be a broker that I won't deal with.
 

FXuni

Recruit
Messages
3
Binary trading is quite simple actually; you make a contract for a certain amount of time, where at the end of the contract you predict whether the price of the financial asset (usually currencies, but also commodities, indices and stocks) will rise or fall. If you're right, you earn the money you've invested. If you're wrong, you get nothing. It means that you have to be good in predicting hourly trends and that there's a big risk that you'll end up with nothing. But on the upside it can be very profitable since you can profit when the market is down and you pay no commission (though I assume binary brokers aren't working for free)
 

fxtrainee

Recruit
Messages
3
Hi all, I just wanted to add to Siddharth's excellent post

I am new to all this and have posted in the community forums as I'm currently in the process of learning the forex market and how to read charts etc.

From what I've learnt and read about binary options, is although it sounds tempting with the word 'trading' added everywhere, it does sort of come down to gambling, one site I read about BO was "Binary Options Trading is not trading in the fullest sense, it's basically gambling (hence why it is not regulated by FSA or NFA), it's a bit like a roulette wheel but instead of red and black it's green (call) or red (put)".
How true this is is down to each individual to decide for themselves.

There is a notice on the CySEC website [I don't have the link at time of writing this], that was sent out by them stating that they are now in the process of regulating BO brokers, but how long this will take is anyones guess.

I have also learnt that BO brokers recent main attraction is the One Touch and 60 second trades platforms which are:

60 seconds: You check their site and see which way the live market analysts believe the price for your intended trade will go, if 60% believe the price will rise then you add a CALL trade and after 60 seconds if the price does rise you earn. Or if the market analysts believe the price will fall you add a PUT trade, but never trade on a 50/50 split. The 60 seconds platforms are on most BO brokers sites and this is the main attraction for people with promises of up to $6000+ per week earnings - Only 1 BO rep told me this was unrealistic and I shouldn't be thinking that will actually happen.

One Touch: This is a bit like the 60 seconds, but you decide what price your chosen commodity or FX will hit within a certain time frame i.e over 30 mins.With one touch it doesn't matter at what price the commodity or FX is at at the end of the 30 mins as long as it hits the price you specified i.e You decide that EURUSD will hit 1.27836 in 30 mins, but after 30 mins the EURUSD is at 1.27830 as long as it hit the 1.27836 in that 30 mins you win, if it doesn't you lose.

I've created accounts with a few BO brokers but have not funded any of them yet and yes you do get a call from a rep asking you questions, none so far have tried pressuring me as I tell them straight I won't be pressured. But it is always a good idea to ask them any questions you like and put to them any concerns you have straight away and try to not be fooled by the sales patter. One broker did give me a demo account for 24 hours to try without funding, but you will have to find them for yourself :)

I will say this though: If you read all the sites that give brilliant reviews etc, don't take them as gospel as affiliate marketing seems to be rife in the BO field, and the temptation can be great.

I may be new to all this but I have asked a lot of questions and done a lot of research on the major ones out there. The information above is only what I have personally found out, someone else may have more or different information to mine.

Don't be fooled or pressured into anything, BO brokers have minimum deposit limits for a reason and I would advise (although I'm a newbie) is don't take the added bonuses, as to me that sound just too good to be true IMHO :mad:

Hope this helps anyone out there
 

dkami

Sergeant
Messages
752
Hmmmm don't know much about them and think I will stick to XXXX it doesn't give me a hangover:)

I don't like being a wood duck:rolleyes:
 

FreddyFX

Sergeant
Messages
366
True, I also like to be in charge of my trading and not get cornered. At least with forex I can trade what and whenever I want without time limits.
 

CaptainPip

Recruit
Messages
7
Some may associate binary option with gambling. But I beg to differ. In the end, it still boils down to how you as a traders manage your risks. Binary option is just another tool for your to trade as long as you practice strict money management.

It's a matter of time when more retail brokers will start offering this new product.
 

FreddyFX

Sergeant
Messages
366
It is just a matter of time till governments put in place heavier control and better regulations to protect us traders from all sorts of manipulating with spreads and filling of an order.
Then more of this gambling disaster will disappear !!!
 
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