prochargedmopar wrote: MightyOne wrote: dalibor wrote: rowdy wrote: dalibor wrote:
I studied binary options last night and i think its very interesting world... a lot of strategies for daily speculation, i will try it with ig markets on demo account... and for fun pure gambling with choiceodds, five minute and hourly binaries, small amount of course
for example betts on market extremes - consecutive bars, 7 and more on 5 minute market and 5 and more on hourly... do you remember tro buzzards?
According to their website they say they offer daily and weekly binaries. Do they offer smaller timeframes? Your post suggests that they do. I realize I could just open a demo and find out but I am not ready to jump into binaries just yet. I am trying to keep from putting too many irons in the fire. Eventually though I want to explore them so tell me more. Minimum account size and other info would be helpful.
IG Markets offer daily binaries forex - up/down, ladders and one touch, hourlies only for indices - ftse, wall st etc., minimum 100.00 pounds, free demo account, platform looks really good
Choiceodds.com offer 5 minute, hourly and daily binaries for fx, indices and commodities, but no demo account... i watched online their 5 minutes binaries - fast as hell
You do not have to hold a daily binary until expiration!
Expiration just means price settling at 0 or 100 depending on which side of the strike it expires on.
When you enter long 20 pips from the floor it is the same thing as going long the spot with a 20 pip stop only:
1. If price moves 20 pips against you then you are not stopped out
2. The most you can make is 80 pips profit (how many of you do that in a single trade?)
3. You have all day or all week before you are stopped out by time.
4. Even when you're wrong your position still has value until expiration. You can recover 5 or 6 pips because a position with time value has value.
So if you enter 18 pips from the floor and later recover 5 then your true risk is 13 pips (size your positions accordingly).
You would have to be insane to choose gambling over the binary market.
Which do you prefer:
A: 0.9 to 1 payoff
B: >4 to 1 payoff and recover 25% of your bet if you are wrong.
Hard choice I know
I opened a demo,
Have no idea what to do, how the platform works, ect., but will read up on it a bit.
I guess it's no different than my first trade in forex, which was live, with a mini account. When trying to close the trade in profit I actually hedged.
Better demo this one.
You will notice that there is a list that reads something like:
GBPUSD to close >1.5000
If you think that price will close higher then you buy
If you think that price will close lower then you sell
If you don't really care, but wish to profit from a rise then buy near the floor.
If the strike is 1.5000 then the floor is at 1.4950 and the ceiling is at 1.5050.
If you could buy at 1.4950 then you would have a zero risk trade because you cannot lose money beyond the floor.
You want to buy as close to a floor as possible and strikes are 20 pips apart so you follow these simple steps:
1. Price is within 10 pips of which strike?
You look down and see strikes at:
GBPUSD to close >:
1.5000, 1.5020, 1.5040, 1.5060, 1.5080, etc
The current price is 1.5034 so it is within 10 pips of the 1.5040 strike.
2. You want to buy so you count upwards two strikes and buy the 1.5080 strike.
Where is the floor of the 1.5080 strike?
1.5080 - 0.0050 = 1.5030 so your risk is 1.5034 - 1.5030 or ~4 pips.
So the rule to remember is:
When price is within 10 pips from a strike you buy two strikes higher or sell two strikes lower.
There is a little button on the platform that turns the list into bid/ask boxes by strike level with the number of lots available at each price.