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  1. #1
    Moderator Kolyo's Avatar

    Question Binary Options News Trading System !!!

    Hey guys,

    What do you think about a new binary options trading system that I heard about recently. The logic is simple. First you have to wait few minutes before important economic release, than place a boundary option with prices that are not too far away for example 10 or 20 pips from the current price and than just wait In my opinion and from many observations there is no way that the price after the release like NFP, GDP, ECB rates or something of the magnitude like this will stay the same. Share what you think? Where’s the catch or there is no catch, I don’t know, but looks a promising idea
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  2. #2
    Master Member SeasaltMcFish's Avatar
    Don't use it either, but somehow, I think brokers will also know this and have adapted their payout or trading opportunities to that.

    But I agree: it's an interesting idea

  3. #3
    Master Member Bogdan G's Avatar
    I dont see why it wouldnt work (I assume you are talking about Boundary Out). Price will definitely move the distance you mentioned during the news releases you mentioned and has high chances of expiring out of the boundary.

    In theory it could work... however, I agree with SeaSalt and i believe no broker will let you do it. They will adjust the payout, make the boundary option unavailable, etc, etc. In fact I would go for such a trade even if the payout is much smaller than usual because the chances of ITM are huge.

  4. #4
    Legendry Member milos's Avatar
    During the news price can move up or down more than 50 pips for currency pairs AUDUSD and NZDUSD.ECB rates unchanged 20 pips up/down,GDP,NFP, EURUSD,USDJPY, GBPUSD by my opinion 30-40 pips up/down 1-5 minutes...It depends from psychology of traders or market sentiment...Also during the news you can't trade. Brokers don't allow you to trade when the news is published. For example, if its published news for pound currency pair GBPUSD will be available in next 30 minutes or later.I was trade a year ago at Optionfair and thet was written. I can post screen shot or video i was recorded as proof.
    Last edited by milos; 12-03-2014 at 09:50 AM.

  5. #5
    Master Member Bogdan G's Avatar
    No need to, we believe you.

  6. #6
    Legendry Member milos's Avatar
    Quote Originally Posted by Bogdan G View Post
    No need to, we believe you.
    Here is proof you can see GBPUSD will be available at 16.35h
    Click image for larger version. 

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  7. #7
    Moderator Kolyo's Avatar
    Yes, I suppose all of you are right guys.

    Brokers won�t allow taking such an easy money off the table. However this is idea that maybe someday will work with one or another binary options broker, because boundary out options becomes more and more popular. I hope we will examine this idea more deeply in the future. I know some guys that implemented in the past this simple idea into the spot forex and they succeeded to capture consistent profits with just placing limit orders on both sides of the market. However most brokers catch them up and now it is much more difficult to do that. For example OANDA spreads are widening 5-10 times during the important news release and nobody can trade risk free during such periods.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  8. #8
    Master Member SeasaltMcFish's Avatar
    In the end, every really good strategy will be caught by the brokers, so it's important to always stay awake in your trading and check if a system is still working.

  9. #9
    Veteran Member Dan21's Avatar
    It is a good strategy but as most of the good strategies is well known to brokers too and they will make everything possible to avoid such type of trading.

  10. #10
    Legendry Member Okane's Avatar
    Good idea but take a look right now for example,
    boundaries are unavailable until 14:40 which is 10 minutes after 14:30 USD news.
    Another problem is, like today, when many news are coming out too close to each other,
    thus letting the price stay indecisive or maybe cancel each other out.

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