Binary Options scam

Quote from Eric1977:


The reason I put it in the same category as gambling is that once you open a binary options position, you have to wait until expiration, there's no way to close out or adjust a position (other than openning up another position).

Is it possible to put on spreads with the binary option firms that have strike prices (AKA latter?) How far apart are the steps to the ladder?
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NADEX (formerly HedgeStreet) offers binary options which have strike prices and also can be traded out of at any time, not just held until expiration. They also offer something they call "Bull Spreads" which are really just range limited options which also can be traded in and out rather than just held to expiration. The strikes vary, but usually there are enough to choose from unless you have some sort of trend that is just one way in a direction endlessly, in which case there aren't too many out of the money ones.

There are plans for CBOE to start pushing binary options this year, so they would seem to have more legitimacy than you are claiming here. It may not be your preferred form of trading, but it does have its uses, and in particular is quite useful for people with small accounts or who want to trade in completely risk-limited ways to eliminate unlimited loss scenarios while still getting participation in a variety of markets such as commodities, FOREX, and stock indices.

Spreads are wide but NADEX is CFTC registered - it's not a scam and it's not gambling. Although it could be compared to a bucket shop in some ways, it's not subject to the same sorts of abuses and manipulations that used to happen in the 1920's where the underlying could be forced to prices that would stop someone out with no money left.

There are some companies in the UK that offer something they also call "binary options" that seem a lot more like the gambling stuff you are talking about. These are the ones that can't be traded out of and have weird rules like "winning 85%" when the trade works, and "winning 15%" when the trade fails.
 
"There are some companies in the UK that offer something they also call "binary options" that seem a lot more like the gambling stuff you are talking about. These are the ones that can't be traded out of and have weird rules like "winning 85%" when the trade works, and "winning 15%" when the trade fails."

THIS IS EXACTLY WHAT I WAS REFERRING TO, the majority of so called "Binary Options companies" have this kind of "winning 85%" on successful trades and "loosing 15%" - how is this different from gambling?
 
It never ceases to amaze me how anyone can think that any kind of trading is different from gambling. You are speculating. Period.

And, guess what, the odds are against you over time if you BUY any option. Otherwise, the market makers wouldn't be in business. Selling options, and hedging your risk, is the only way to win, over time.

The question is purely, "Can I make money at this activity?" Some can, and some can't. Most edges disappear over time, so eventually, unless you are incredibly disciplined, intuitive, well-capitalized, and darned lucky, you will give back what you've made.
Good luck, non-gamblers! May the force be with you! ;^D
 
I think they are marketed to the same crowd that used to use online casinos. I have played with them for fun. I'm not sure you could even really put money into them if you wanted one big win would probably sink these "brokerages"
 
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