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

[atticus]

Quote from Surprise:

Yes not that good , and BTW here is another note re anyoption touch binaries the way they determine if a price barrier is reached is a bit skewed . ie : lets say you took FB to touch 21 , what they do is they take the closing price for FB everyday during the week , if according to the closing prices your price barrier was reached then you get paid and if not then you don't , so if FB reached 21 intraday then reversed you wouldn't get paid !

wow, that's weak. Their pricing (barring that exclusion) is poor, anyway.

 

[kapw7]

Saxo is advertised as a respected OTC fx dealer. The screenshot is from my (retail) account:

 

[Surprise]

Quote from atticus:

wow, that's weak. Their pricing (barring that exclusion) is poor, anyway.

yes .
They pay 67-70 $ if you risk 85$ on their up/down binaries , but here is a thing , sometimes the long term binaries weekly , monthly strike price get skewed , ie : lets say the EUR is now at 1.27 , the daily strike price is at 1.27 but the monthly strike level is at 1.26 , it happens all the time what you think ?

 

[Surprise]

If anyone is interested take a look at stockpair dot com they have binary options on "stocks-pairs" , shortterm and longterm , didnt try them though , that's the problem with these brokers like anyoption i don't know if they are trustworthy ...

 

[sle]

Quote from Surprise:

If anyone is interested take a look at stockpair dot com they have binary options on "stocks-pairs"

I take it you can only buy these options, not sell them?

 

[Surprise]

Quote from sle:

I take it you can only buy these options, not sell them?

Will take a look Tom

 

[comintel]

Do not trade any financial instrument unless you can get quotes for both buying and selling so that you can see the spread.

If they quote only one side, you are likely paying at least 2 or 3 percent hidden commission bundled into the price.

 

[sle]

Quote from comintel:

Do not trade any financial instrument unless you can get quotes for both buying and selling so that you can see the spread.

If they quote only one side, you are likely paying at least 2 or 3 percent hidden commission bundled into the price.

One-sided markets are fairly common in bespoke world and even if the other side is there, nobody expects it to trade (e.g. knock-out options). In the end, no matter what is "bundled into the price" if my model puts the fair value at a premium to the single-sided offer or at a discount to a single-sided bid, I should trade it.

 

[cdcaveman]

Quote from sle:

One-sided markets are fairly common in bespoke world and even if the other side is there, nobody expects it to trade (e.g. knock-out options). In the end, no matter what is "bundled into the price" if my model puts the fair value at a premium to the single-sided offer or at a discount to a single-sided bid, I should trade it.

respectively fair price could be even above the ask of the one side quoted taylor made option.. its all relative... fair to their model might not be fair to yours or mine or reality.. insurers sell what hey consider "fair" priced insurance and scream when it turns out not to be so fair..

 

[sle]

Quote from cdcaveman:
insurers sell what hey consider "fair" priced insurance and scream when it turns out not to be so fair..

It's a part of their business model - when the going gets tough, they try to squeeze a tiny bit more by refusing to pay. Awesome industry.