Thoughts on Binary Options

Pharaoh

Colonel
Messages
19,919
Binary options are illegal in many countries for two very good reasons. First, the vast majority of binary brokers are nothing but deposit-only scams. Second, binary options is a simple up/down bet. It's like betting red or black at roulette, except that the payouts are much worse than any licensed casino.At a casino's roulette table, you are not betting against other players. You are betting against the house. At a binary broker, there is no outside liquidity provider. Your wins come out of the broker's pocket and your losses go into the broker's pocket. This give those few binary brokers that aren't deposit-only a strong motivation to find ways to claim that successful trades were somehow cheating.

If you want to gamble, go to a licensed casino. The payouts are better and if you win, you know you can cash out your chips without any problems. If you want to trade or invest, avoid binary options.
 

weedforlife

Private
Messages
20
Binary options are illegal in many countries for two very good reasons. First, the vast majority of binary brokers are nothing but deposit-only scams. Second, binary options is a simple up/down bet. It's like betting red or black at roulette, except that the payouts are much worse than any licensed casino.At a casino's roulette table, you are not betting against other players. You are betting against the house. At a binary broker, there is no outside liquidity provider. Your wins come out of the broker's pocket and your losses go into the broker's pocket. This give those few binary brokers that aren't deposit-only a strong motivation to find ways to claim that successful trades were somehow cheating.

If you want to gamble, go to a licensed casino. The payouts are better and if you win, you know you can cash out your chips without any problems. If you want to trade or invest, avoid binary options.
couldn't say it any better. thanks!
 

Mazshura

Recruit
Messages
66
It seems to me that this direction is not the most promising today. Although I may be wrong. It's just that there are people who are successful in Forex. And there are people who make good money with binary options.
 

Spellkiller

Private, 1st Class
Messages
61
Not everybody copes with the dynamics of this approach, because it requires ingenuity, large enough capital and it has certain specific risks. I think that it just needs to try and draw conclusions. Not just to talk about it in theory.
 

Balladotus

Private
Messages
28
Compared to Forex, it looks very insecure, and I do not think it is the best option for someone who is just beginning to work in the market. I think that this is the right direction for experienced traders.
And for big ambitions.
 

bigdolly

2nd Lieutenant
Messages
1,004
I know people who trade it very well but gets a lot of bad press. Thoughts
It is much more difficult to make money (consistently)on binary options than in CFD trading. The reason is asymmetry in payouts/ loss ratio and symmetry in odds of making correct/wrong prediction. The odds of making correct prediction is 50% while payouts are only 80% of the bet. Hence if you bet 1 USD, expected value of your win 0.8*0.5+ 0.5*(-1) = -0.1 USD. In other words it is skewed heavily against you. in CFD trading you only pay spread, commissions etc.
 

jim67

Private, 1st Class
Messages
144
i have never truly understood binary options or the difference i just concentrate on what i know which is forex
 
Top