Nadex 20 & 5 binaries

[Sig]

Ofcourse i do. That was my point. These bucket shops cant afford to pay the licence fee to use the name.

OK, red herring 11? What does paying to use the name have to do with how I get treated as a trader again?

 

[southall]

They're based on actual index prices which they've never cheated on in my experience, you?

Correct me if am wrong, but they use a proprietary data feed for FX to calculate settlement price. Is that correct?

 

[koolaid]

Let me spell this out for you "like a child" while dropping in the occasional LMAO so you understand, since my sarcasm clearly flew well over your head. What makes CBOE "real" and Nadex not? CFTC regulated, oh they both are. Anyone can make a market, oh, that's true of of both. Is it that their binaries, and by your sole determination exotic options aren't "real"? You know CBOE trades binary options on VIX right? They're cash settled, OK throw out SPX, one of the most traded options in the world. Or is what's "real" and what isn't just what you say is. You realize the complete lack of logic you're displaying here don't you?

Are the trades on Nadex backed by options/futures contracts in the open market? That's all you need to show me.

Otherwise, all you're doing on Nadex is betting A or B will happen...and you're doing that against the house...it's the same as any of these other gambling websites that bet on elections and other events.

 

[southall]

You do realize that there is no such thing as "selling" a binary bet? You either betting that at time T price is over or under, unlike an option where you actually have some convexity exposure.

Agree, intraday binaries are mickey mouse gambling products not serious options for hedging risk.

 

[koolaid]

You do realize that there is no such thing as "selling" a binary bet? You either betting that at time T price is over or under, unlike an option where you actually have some convexity exposure. If the spreads are indeed 15% wide, it is a predatory business.

This is what I am trying to explain to these tards.

 

[sle]

Are the trades on Nadex backed by options/futures contracts in the open market? That's all you need to show me.

I am pretty sure the MM is delta hedging these, at these BO spreads they would be making money. Plus, the actual vol exposure for a digital is very small.

 

[koolaid]

I am pretty sure the MM is delta hedging these, at these BO spreads they would be making money. Plus, the actual vol exposure for a digital is very small.

I don't even think they need to delta hedge..they can just play their clients' positions off each other like any good bucket shop would. With a 15% spread...you don't need much hedging.

 

[Sig]

You do realize that there is no such thing as "selling" a binary bet? You either betting that at time T price is over or under, unlike an option where you actually have some convexity exposure. If the spreads are indeed 15% wide, it is a predatory business.

I should have more accurately said you can take either side of any trade, and with a binary "selling" the long is the same as "buying" the short since it is binary. You and I can market make same as them all day long. If you haven't yet signed up for an account I highly recommend doing it for fun next time you have a slow day. I think it's a minimum $100 to fund and I think you'll find it fun to play around with. If 6% is usurious (I don't know where 15% came from, I always see a $6 or less spread) than its an opportunity for you since you can compete equally. You can even set yourself up with a FIX connection. I know you do this for a living and I'd love to have you on there as another MM!

 

[koolaid]

I should have more accurately said you can take either side of any trade, and with a binary "selling" the long is the same as "buying" the short since it is binary. You and I can market make same as them all day long. If you haven't yet signed up for an account I highly recommend doing it for fun next time you have a slow day. I think it's a minimum $100 to fund and I think you'll find it fun to play around with. If 6% is usurious (I don't know where 15% came from, I always see a $6 or less spread) than its an opportunity for you since you can compete equally. You can even set yourself up with a FIX connection. I know you do this for a living and I'd love to have you on there as another MM!

This is going to be reported as promotion...you should list yourself as a vendor if you're going to entice ppl in this shady work.

 

[sle]

This is going to be reported as promotion...you should list yourself as a vendor if you're going to entice ppl in this shady work.

Out of all people here, I am probably the lowest on the list of being possibly scammed