FCA bans all binary options permanently

[mlawson71]

The Financial Conduct Authority (FCA) in the UK has made the temporary ban on binary options, which has been in place for the past nine months, permanent.

A similar ban on binary options bets has been introduced by the European Securities and Markets Authority’s (ESMA) on 2nd of July, 2018. The European measure, however, is still temporary in nature and need to be extended every 6 months.

Another difference is that FCA extends its restrictions on the so called ‘securitised binary options’ that were excluded by ESMA.

 

[southall]

I made about 200K GBP ($300K) tax free from Binaries. Over about 6 years. So only $50K a year. But it was tax free because it was pure gambling.
It was hard to trade size when they figured out i was a consistent winner they capped me to just £10 a point.
This was in the early days when bid/ask spreads were tight and volatility often mis priced.
Later they widened the bid ask spread to the point it was virtually impossible to make money over the long run. The orginal 5pt bid/ask spread became a massive 15pts, and sometimes even more than that.

 

[destriero]

I made about 200K GBP ($300K) tax free from Binaries. Over about 6 years. So only $50K a year. But it was tax free because it was pure gambling.
It was hard to trade size when they figured out i was a consistent winner they capped me to just £10 a point.
This was in the early days when bid/ask spreads were tight and volatility often mis priced.
Later they widened the bid ask spread to the point it was virtually impossible to make money over the long run. The orginal 5pt bid/ask spread became a massive 15pts, sometimes even more than that.

How can any dealer misprice an ATM binary?

 

[southall]

How can any dealer misprice an ATM binary?

Obviously they were mispricing the ones away from the money.

 

[destriero]

Obviously they were mispricing the ones away from the money.

I've never seen any dealer mispricing in the client's favor on any bog-standard digital. Add in the spread...

 

[southall]

I've never seen any dealer mispricing (-edge) to the client on any bog-standard digital.

You had to be quick. You had to realise it was a slow day before they did. When they figured it out as well i would often see a huge jump in my PnL as they repriced the options to reflect the low volatility.

But later when they widened all the bid/ask spreads it was harder to take advantage of any such mis pricings.

 

[zdreg]

The Financial Conduct Authority (FCA) in the UK has made the temporary ban on binary options, which has been in place for the past nine months, permanent.

A similar ban on binary options bets has been introduced by the European Securities and Markets Authority’s (ESMA) on 2nd of July, 2018. The European measure, however, is still temporary in nature and need to be extended every 6 months.

Another difference is that FCA extends its restrictions on the so called ‘securitised binary options’ that were excluded by ESMA.

It acted After the horse has left the barn. it sounds like the SEC.

 

[Mellov]

I made about 200K GBP ($300K) tax free from Binaries. Over about 6 years. So only $50K a year. But it was tax free because it was pure gambling.
It was hard to trade size when they figured out i was a consistent winner they capped me to just £10 a point.
This was in the early days when bid/ask spreads were tight and volatility often mis priced.
Later they widened the bid ask spread to the point it was virtually impossible to make money over the long run. The orginal 5pt bid/ask spread became a massive 15pts, and sometimes even more than that.

Yeah, those system are built in such a way that you will never be on the winning sides. Else ow will they make their millions. It is pure gambling anyway.