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Advice on binary options

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Carl9
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Advice on binary options  Reply with quote  

I recently came across a binary options trading site and I wanted to know what the deal was with them. I like their apparent simplicity but would like some advice before I start trading.
And thoughts on this? Recommendations?
Post Wed Oct 28, 2009 4:01 pm
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No-Brainer
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There are 10 kinds of people in this world, those who understand binary and those who don't.

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Post Wed Oct 28, 2009 5:07 pm
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coaster
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quote:
Originally posted by No-Brainer
There are 10 kinds of people in this world, those who understand binary and those who don't.


Laughing Laughing Laughing

To the OP -

Since most purchased options expire worthless, I don't see much additional risk in purchasing binary options. They're probably going to be difficult to price however, since the pricing models in existence assume the usual factors affecting options, and they're invalid inputs here. So if you're purchasing options, it's going to be a crap shoot whether it's a good value for the risk or not.

I would really hesitate to SELL binary options. Since there's a 50/50 chance of a payoff, and assuming excercise/assignment operates in the same manner, you're basically gambling that you won't be assigned. With normal time-decay options, selling options will 90% of the time generate a net premium. (Though don't think that's without risk: selling options generates 90% very small profits, but those 10% losses can be whoppers)

~Tim~
Post Thu Oct 29, 2009 1:31 am
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No-Brainer
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quote:
Originally posted by coaster
quote:
Originally posted by No-Brainer
There are 10 kinds of people in this world, those who understand binary and those who don't.


Laughing Laughing Laughing

To the OP -

Since most purchased options expire worthless, I don't see much additional risk in purchasing binary options. They're probably going to be difficult to price however, since the pricing models in existence assume the usual factors affecting options, and they're invalid inputs here. So if you're purchasing options, it's going to be a crap shoot whether it's a good value for the risk or not.

I would really hesitate to SELL binary options. Since there's a 50/50 chance of a payoff, and assuming excercise/assignment operates in the same manner, you're basically gambling that you won't be assigned. With normal time-decay options, selling options will 90% of the time generate a net premium. (Though don't think that's without risk: selling options generates 90% very small profits, but those 10% losses can be whoppers)

That's why they call it binary, 50% chance you will lose. By the way, you should have only used two smileys Embarassed Embarassed

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Post Thu Oct 29, 2009 6:46 pm
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coaster
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quote:
Originally posted by No-Brainer
By the way, you should have only used two smileys Embarassed Embarassed

Warren, I think you missed your true calling.
Laughing Laughing

~Tim~
Post Thu Oct 29, 2009 7:11 pm
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No-Brainer
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quote:
Originally posted by coaster
quote:
Originally posted by No-Brainer
By the way, you should have only used two smileys Embarassed Embarassed

Warren, I think you missed your true calling.
Laughing Laughing

Someone help me up off the floor ROFL

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Post Thu Oct 29, 2009 7:21 pm
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Carl9
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Umm. Thanks for the responses. Not sure how much clearer things are for me but i think i will start slowly and see where it takes me. Will let you know the results....good or bad Confused
Post Mon Nov 02, 2009 8:49 am
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Daniel Webb
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Re: Advice on binary options  Reply with quote  

quote:
Originally posted by Carl9
I recently came across a binary options trading site and I wanted to know what the deal was with them. I like their apparent simplicity but would like some advice before I start trading.
And thoughts on this? Recommendations?


Options trading isnít for all investors, but folks who have the discipline and skill to master this exciting way of making money can realize big profits if they start out with the right advice. Before you choose a site, make sure that they are qualified to:
* Guide you through the basics of options trading, and keep you from making dangerous rookie mistakes.
* Explain how puts and calls work and show you how to use them to your financial advantage.
* Teach you about long term options (LEAPS) and how you can maximize your investments by using them.
* Walk you through how investors use options to speculate and hedge their risks.

Good luck! Smile
Post Wed Jan 20, 2010 2:10 am
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ParkGuyri
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I started with demo account practicing. There are some brokers that provide free demo accounts, one of them you can check at Opteck review.
Post Sat Nov 21, 2015 9:09 am
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VicVic
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Hi, let me add my 2 cents Smile
Binary options are good to start trading and learn about the stock market, because you don't risk too much money. But you still need to do your homework to trade them successfully. If you don't want to learn analysis, you can play c*sino games and have the same results Shocked
Whether you like technical or fundamental you need to understand what you are doing and why you are trading it this way, and this understanding takes time and patience.
Post Mon Nov 23, 2015 8:37 pm
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VicVic
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Hi,
I Came accross a good place to try binary options today which made me thinking about your question again,
You can see yourself how it works on the Alpari website, I liked it because you don't have to register so they won't spam your email with offers. https://alpari.com/en/binary_options/
There are also some more info about binary options if you click on the tab, but I'd rather look somewhere else. I believe it's best to learn from not affiliated resources, like Investopedia or Investing.com, etc. Here is a good article from investopedia that explains the basics of binary options trading
http://www.investopedia.com/articles/optioninvestor/10/binary-options.asp[/url]
Post Wed Nov 25, 2015 8:57 am
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jakesgarland
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Binary options are an easy and effective way to invest money in stocks and make a little extra on the side. One should make sure they choose a trustworthy platform to entrust their business. Fundamental knowledge about binary options is needed for one to be successful in binary options trading.

binary trading brokers
Post Sat Nov 28, 2015 3:19 am
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