Nadex Binary options

[Wade Wilson]

As other posters pointed out, I don't think there's a good way to be consistently profitable using Nadex as their owner intends you to. Which isn't the same thing as saying there aren't ways to be profitable while still following the exchange rules.

I agree.I think Nadex offers a way of trading with unique benefits that I have not seen any other way being able to match.Some say trade the underlying but with the underlying the trader has the risk of the trade going to far against them and getting stopped out.With Nadex the trader can take a 50-50 risk reward trade(minus the spread) and the trade can go far against the trader but only has to close 1 point above the price the trader bet on the price closing above.

Buying calls or puts the price has to close much higher than 1 point to get a 50-50 risk reward trade.Selling naked options doesn't limit risk the way binaries does.Spreads can come close to matching binaries but in many cases the stock has to make a bigger move than the binary trade requires for the same risk/reward.

 

[777]

I think he is implying that running a casino is a scam too. If you prey on people’s ability to analyze numbers without supplying them with hookers and blow, its a scam in my book.

Nadex strongly suggests their binary options are a beatable game for potential sharp retail customers.

Should a casino market their Big 6 wheel in this manner, I would use the same terminology.

A lot depends on what is stated and what is implied.

For example, I would be more approving of the following:

A fellow runs a poker game with marked cards but tells all players this and there has a sign over the table that says:

"Owner plays with marked cards because he plays so badly but you probaby will lose your ass.. *ask for details"
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I am offering an ethical perspective, not a legal opinion.

 

[Wade Wilson]

What other method of trading allows a trade to go 100 points against you but only need to close 1 point above the strike price and still get a 50-50 (minus the spread) risk reward trade ?

 

[Sig]

Nadex strongly suggests their binary options are a beatable game for potential sharp retail customers.

Should a casino market their Big 6 wheel in this manner, I would use the same terminology.

A lot depends on what is stated and what is implied.

For example, I would be more approving of the following:

A fellow runs a poker game with marked cards but tells all players this and there was a sign over the table that says:

"Owner plays with marked cards because he plays so badly but you probaby will lose your ass.. *ask for details"
___

I am offering an ethical perspective, not a legal opinion.

Again you confuse Nadex with a bucket shop. You can take either side of any trade, they just take a commission just like playing poker at a casino without marked cards. Marked cards would be them manipulating closing prices or something else illegal of that nature. You have no evidence of that.
Again, if you're convinced the typical person is going to loose money there, then just take the opposite position a typical person would. You can go long or short on any contract at any time. Or better yet take the opposite side of every retail limit order there. You won't, because it's not as foolproof as working a marked deck as you imply.

 

[777]

What other method of trading allows a trade to go 100 points against you but only need to close 1 point above the strike price and still get a 50-50 (minus the spread) risk reward trade ?

Better questions are:

Can I obtain a worthwhile positive expectation?

Is there a better alternative?

 

[777]

Again you confuse Nadex with a bucket shop. You can take either side of any trade, they just take a commission just like playing poker at a casino without marked cards. Marked cards would be them manipulating closing prices or something else illegal of that nature. You have no evidence of that.
Again, if you're convinced the typical person is going to loose money there, then just take the opposite position a typical person would. You can go long or short on any contract at any time. Or better yet take the opposite side of every retail limit order there. You won't, because it's not as foolproof as working a marked deck as you imply.

I was making a point that what one states or implies in one's advertising is important.

To me, these things often are key.
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In roulette one can take either side of red or black or bet on both.

Should a casino strongly imply skilled (on an unbiased wheel with no hocus pocus) players may have the edge, I would not speak kindly about what they are doing.
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I understand well meaning people sometimes differ on what is ethical and I thank you for your thoughtful reply and will give your ideas some extra thought.

 

[cole_]

You can invest your cash into an ABS backed by a pool of payday loans. It’s very pleasing returns-wise and is totally legal but that does not make payday loans any less predatory.

All speculative trading is parasitic by its very nature.

 

[sle]

All speculative trading is parasitic by its very nature.

Not true, if you think about it. Speculation is a requirement for efficient risk transfer and price discovery. Look around the globe and you’ll find that all developed capitalist societies have a well developed financial market. However, since speculaton is not transformative, if the underlying product is evil, like the payday loans, speculating in it does not make the product less evil.

PS. In fact, since it makes the market more efficient, I’d even say speculation in a evil product is also evil. For example, a reseller of blood diamonds is guilty as well as the original miner, though probably to a lesser degree.

 

[sle]

Again you confuse Nadex with a bucket shop. You can take either side of any trade, they just take a commission just like playing poker at a casino without marked cards.

It’s a matter of cost/benefit analysis, that’s where lies the difference between an honest business and a scam (a ripoff or a “predatory business” is a better term, I think). If I lend someone 500 dollars until the next paycheck (zero risk to me) at the rate of 10% per year it’s an honest business (more or less). If I provide the same loan for 5% a month that’s obviously predatory. Same goes for anything market related too, if you think of it.

PS. A one-touch in a liquid index like SPX would usually be quoted 3-5% wide in the OTC markets. It’s a far more toxic product than a European binary.

 

[777]

Sign in the slot area of the Bellagio casino:

"It's true...

Unicorns are not real but the house's advantage is"


Three people are playing next to this sign at 7:30 am.