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Binary Options

  • 6 replies
    • VorpalF2F
      Super Moderator
      Super Moderator
      Joined: 02.09.2010 Posts: 10,742
      I've heard of it.
      That's about it.

    • TJtheTJ
      Joined: 12.10.2011 Posts: 6,588
      I'm far from an expert on this but will give it a shot anyway. I've also never attempted trading them so I can only tell you some theory behind them that I am aware of. So take this with a grain of salt :)

      Binary options come with some advantages and some disadvantages. The big advantage being that you know the risk and reward of a trade. One disadvantage is that you never actually obtain ownership of the underlying asset you are trading for. What this means is that you can only "wager" on the market direction the asset is going and nothing more.

      What I'd say is the major disadvantage of binary options trading, is the poor risk-reward ratio. You basically have to be right a relatively high amount of the time to be able to make a profit with this trading method, considering you generally lose more on losing trades than you win on winning trades.

      I also believe there are quite significant differences between trading binary options US regulated markets and markets regulated outside the US, but I don't really know a whole lot about that.

      I think the above points are important to take into account. Whether or not it's recommended to trade binary options, I honestly don't know because I have 0 experience with it. Maybe someone else knows a thing or two extra though :)

      Hopefully that helps!

    • tonypmm
      Joined: 11.01.2009 Posts: 4,869
      Will it be the next big thing after online poker fades out? At least I've read it in some report from a gaming conference.
    • BassTi
      Joined: 07.10.2006 Posts: 1,672
      Iam not sure but I have a bad feeling about this.

      I prefer thinks like Social Trading, Crowdfunding and p2p lending. I think these are the next big trends.
    • Fishin4Fun
      Joined: 30.06.2012 Posts: 140

      I can be very short in this, don't start with binary options.

      A few reasons:

      - Very bad risk/reward ratio
      - Almost unsustainable being profitable in the long run
      - Many scams with regard to brokers/ trading systems, signal service providers
      - Many brokers manipulate price, use a huge spread or only deliver as long as you are losing client or a small winner

      It is your choice of course, but please do your homework before you start and then I don't mean the "unbiased" reviews on affiliate websites.... :coolface:

    • Fishin4Fun
      Joined: 30.06.2012 Posts: 140
      Will it be the next big thing after online poker fades out? At least I've read it in some report from a gaming conference.

      Sure, because there is a lot of money to be earned for brokers and affiliates. It sells easy like everybody can make huge profits within a short time frame, but basically it is just another form of gambling, just sold in a nice package. :D