NADEX

I'd also like to add an "IRL" example. Oanda was offering >40D touches priced as digitals. In 2011 the mkt in a 40-pip OTM bear-strike TOUCH on EURUSD was 75/100 BUYS at ONE MONTH in duration. These were not classified as touches (they were box options) but were structured as either fwd-starts (permutations thereof), digitals or touch markets, depending on how they were structured in 2D. I have some screengrabs somewhere on dropbox, but I PMed mav here on ET (he can corroborate) with actual R/T examples that I'd traded.

So the empirical difference between a digital and a touch = Oanda's blowout and leaving the space. Even when pricing was a few bp off theo, it was a fantastic mkt to trade. Endless possibilities on FX option structuring.

FWIW, I've got a EURUSD DNT going off tomorrow at 5PM ET. 1.3434x1.3626 does not touch from 73K/100K Euro OPM. Done this morning.
 
Jakieo My 2 cents.....

If a binary option has a known potential maximum return known at the the time of purchase (much like a vertical option spread) then it makes no sense comparing it to an out right option purchase. ( This is where i think drownpruf is coming from.)

Your post #23
You dont need maths, screenshots or anything else to understand that by comparing prices and deltas it simply mixes things up.

The binary option may be priced AS the delta of a strike, but as it has a fixed payoff, then it probably has the same payoff as a vertical spread not an outright call.

It looks like all you are doing is betting on the movement of the delta of a single strike option. If this is all it is then dont confuse this with thinking you are betting on the movement of the underlying.

Not to ruffle anyones feathers.....:D
 
drownpruf said:
I'd also like to add an "IRL" example. Oanda was offering >40D touches priced as digitals. In 2011 the mkt in a 30-pip OTM bear-strike TOUCH on EURUSD was 70/100 BUYS at 1M in duration. These were not classified as touches (they were box options) but were structured as either fwd-starts (permutations thereof), digitals or touch markets, depending on how they were structured in 2D. I have some screengrabs somewhere on dropbox, but I PMed mav here on ET with actual R/T examples that I'd traded.

So the empirical difference between a digital and a touch = Oanda's blowout and leaving the space. Even when pricing was a few bp off theo, it was a fantastic mkt to trade. Endless possibilities on FX option structuring.
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I've read your story maybe 100 times over multiple discussion boards . As i understand Oanda left the space because of regulations .
Anyway Nadex offers a wide range of binaries on Indices , FX , and Commodities like energies and Agriculture : weekly , daily , and intraday , however i don't advice anyone to trade the short term binaries .
 
Surprise said:
I've read your story maybe 100 times over multiple discussion boards . As i understand Oanda left the space because of regulations .
Anyway Nadex offers a wide range of binaries on Indices , FX , and Commodities like energies and Agriculture : weekly , daily , and intraday , however i don't advice anyone to trade the short term binaries .
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Well they lost buckets of cash over two "episodes" and not only killed it in the US but overseas, blaming it on Dodd-Frank. I'd like to know how DF impacts Euroland, their white-label with Rabo and others, and the fact that they killed box options a few weeks after the last episode, so a strange coincidence. FWIW, I posted the pricing here and elsewhere and maverick can attest to the pricing. I PMed him on literally the last day of the arb.

I mention it (again) to differentiate touches from digitals. I'd be all over Nadex if they offered touch markets.
 
drownpruf said:
Well they lost buckets of cash over two "episodes" and not only killed it in the US but overseas, blaming it on Dodd-Frank. I'd like to know how DF impacts Euroland, their white-label with Rabo and others, and the fact that they killed box options a few weeks after the last episode. FWIW, I posted the pricing here and elsewhere and maverick can attest to the pricing. I PMed him on literally the last day of the arb.

I mention it (again) to differentiate touches from digitals.
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Oanda had limits on winnings , if it was really painful on their pockets they would just lower the limit ...
 
Surprise said:
Oanda had limits on winnings , if it was really painful on their pockets they would just lower the limit ...
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$20k per account (SSN). I was averaging hits every 8 hours and was running 8-10 accounts at a time. Wins in the high six figures, low seven.
 
Surprise said:
They are morons then , they should've limited you to just $200 :p
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They closed my account but actively pursued the account the following year. I have an AI account with them now.

Trinitas Capital did the same thing with betsfortraders.com. Trinitas started as a buy-side fund that was active in lookback exotics. They were looking for retail sheep to lay-off their risk and started bestsfortraders.com. They were offering DNTs in single-name vol at ridiculous pricing. I opened accounts with friends and relatives in Sweden and Germany and did the same local-machine/RA. At one point the 50x60 strike DNT on WMT was trading 35/100 for a one-week duration. It should've been 95/100.
 
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