Binary options...better than 50/50 chance ?

[cygnetnoir]

Quote from marketsurfer:

WIth Nadex, you can sell or "exercise" your option at any time-- unlike the cyprus dealers-- basically, it can be traded like anything else whereas with the dealers one needs to hold until expiration. This is a huge advantage. surf

I took a look at binary options at Nadex after you mentioned them in the original TST thread.

I would be trading them except for one thing - you can only bet one way. Take crude, for example: You can bet crude will settle >85, >86,>87, etc. and so on. You cannot buy a binary that lets you bet crude will settle <85, <84,<83, etc.

Perhaps NADEX wants you to make those bets as a seller of the premium, but I did not look into that possibility during the duration of the two week demo.

As an aside (though an important one) two weeks is very little time for them to allow one to get aquainted with their platform and products.

 

[rfriend73]

Quote from marketsurfer:

WIth Nadex, you can sell or "exercise" your option at any time-- unlike the cyprus dealers-- basically, it can be traded like anything else whereas with the dealers one needs to hold until expiration. This is a huge advantage. surf

Yes, I agree that the ability to exercise the option is an advantage, but conversely I don't feel that it makes up for the other deficits and negative components associated with..

 

[rfriend73]

Quote from BrakSir:

Piker's territory.

Thanks for your insightful comment and contribution to this discussion.

 

[rfriend73]

Quote from sle:

Never looked at these and I thought initially that these are one-touches that trade (that is, if gold touches 2000, you get a $100), not digital options (that is, gold has to be above 2000 at expiration). In the digital case, I can't see ANY advantage over vanilla option spreads, the payoff is identical.

Agreed on the vanilla options comparison for Nadex...the "other" non US exchanges offer to
the touch option or 60 second directional play which is far more a game of chance and luck.

 

[rfriend73]

Quote from cygnetnoir:

I took a look at binary options at Nadex after you mentioned them in the original TST thread.

I would be trading them except for one thing - you can only bet one way. Take crude, for example: You can bet crude will settle >85, >86,>87, etc. and so on. You cannot buy a binary that lets you bet crude will settle <85, <84,<83, etc.

Perhaps NADEX wants you to make those bets as a seller of the premium, but I did not look into that possibility during the duration of the two week demo.

As an aside (though an important one) two weeks is very little time for them to allow one to get aquainted with their platform and products.

Yes, I opened a demo account and am not impressed with the selection of instruments and the platform itself. Seems to be an interesting premise but poor execution.

 

[trader198]

read the stuff. but not a good stuff. too academic.

stupid people make simple things complicated, smart guys make complicated things simple

made some on this kind of option? any good strtaegety?

Quote from cdcaveman:

definitly read this..

http://en.wikipedia.org/wiki/Binary_option

knock out options.. pay out on touch of strike... read that then ask question

 

[sle]

Quote from marketsurfer:

WIth Nadex, you can sell or "exercise" your option at any time-- unlike the cyprus dealers-- basically, it can be traded like anything else whereas with the dealers one needs to hold until expiration. This is a huge advantage. surf

I could not find anything referring to being able to "exercise" at any time (e.g. collect 100% once you actually touch or pass the level), i did see that you are able to sell the option for whatever Nandex think it's worth (a worthless feature in my mind).

 

[cdcaveman]

all this gives me the impression that these are customized products that your proprietorially involved with just one dealer with..... what you can't market your deal to others?

 

[rfriend73]

Quote from cdcaveman:

all this gives me the impression that these are customized products that your proprietorially involved with just one dealer with..... what you can't market your deal to others?

I get the impression that these Cyprus exchanges are the bucket shops of the 21st century..

 

[marketsurfer]

Quote from cdcaveman:

all this gives me the impression that these are customized products that your proprietorially involved with just one dealer with..... what you can't market your deal to others?

Yah man it's a contract between you and the issuer. Not fungible