Results 1 to 8 of 8
  1. #1
    Solid Member ionone's Avatar

    IG-type broker VERSUS Percentage-type brokers !!!

    Hello

    i'm quite new in BO but i've noticed some major differences between brokers

    1) IG-type brokers

    There are some brokers like IG that propose a variable price for the option depending on how far the price is actually from the previous close
    for example if actual price at 9:00 is higher than the previous close, the price to buy can from 50 to 100

    the lower this number the higher the reward (and the lower the lost eventually)

    so you want absolutely to buy under 50 (it goes from 0 to 100)

    but there i catch : if you lose at 70, it's not the same at winning at 70. Losing at 70 is the same as winning at 30!

    so if you buy at 70 and lose (for a quantity of 0.2) you will lose $200 but if you win, you will win only $70 (and you won't "win" the initial price these prices are all there is!)!!

    so you need a very high HitRate to be able to win money and not be in the red.

    Click image for larger version. 

Name:	aaabbb.jpg 
Views:	16 
Size:	83.7 KB 
ID:	3773

    one thing i like bout IG is the diversity of different BO types (High Low, touch, daily, fast, all indexes, etc)
    I also like the regulation and the quality of service. I doubt you will find it often
    One thing i don't like is what i just stated : variable prices : it kills literally your trades and make it impossible to use : you will very surely lose money instead of winning

    2) 24Options, Banc de binary types of brokers
    Click image for larger version. 

Name:	aaaeee.jpg 
Views:	15 
Size:	46.4 KB 
ID:	3774
    With these brokers that everybody know, you buy for example $1 and if you win you get $1 + a percentage (like 72%)
    if you lose you get nothing

    These types of brokers are a lot HitRate friendly. You will need a much lower HR than IG for example


    I started with IG and my automated technique but it is not working very well (God knows what they do to their prices and no way to get historical prices but with progrmming APIs (and i don't have time for that))

    so i'm thinking about switch to BDB or others, i think i'll have better luck there.

    and brokers like BDB propose DAX AND DAX Futures which i appreciate.

    Here is my analysis

    What type of broker do you prefer? Are there other types?

    Jeff

  2. #2
    Master Member Bogdan G's Avatar
    Well Jeff, you are right that IG style options are very different than regular BO brokers.
    But... have you tried Sprint Markets? They work just like the regular BOs but like you said, you have the advantage to deal with a regulated and more importantly, trustworthy brokerage. The downside is that the asset list is somewhat limited.

    Here's a link to our IG review: http://www.binaryoptionsthatsuck.com/review/ig-suck/

    Cheers!
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  3. #3
    Master Member Bogdan G's Avatar
    Quote Originally Posted by ionone View Post
    so you want absolutely to buy under 50 (it goes from 0 to 100)
    Not necessarily. If the probability of the option to increase is very high, you can buy above 50... even at 90 (of course depending on probability)
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  4. #4
    Master Member Bogdan G's Avatar
    Quote Originally Posted by ionone View Post

    the lower this number the higher the reward (and the lower the lost eventually)
    Yup, agreed
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  5. #5
    Master Member Bogdan G's Avatar
    Quote Originally Posted by ionone View Post

    but there i catch : if you lose at 70, it's not the same at winning at 70. Losing at 70 is the same as winning at 30!

    so if you buy at 70 and lose (for a quantity of 0.2) you will lose $200 but if you win, you will win only $70 (and you won't "win" the initial price these prices are all there is!)!!
    Please explain this further. I dont think i understand
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  6. #6
    Rookie Member Christos's Avatar
    I personally prefer fixed returns, meaning everytime you take a trade the lowest is 70%

  7. #7
    Moderator Kolyo's Avatar
    With fixed returns it is much easier to calculate your risk and reward. With variable returns you only believe the broker is pricing them in your favor but actually it is pricing them in his favor. I also prefer to trade with predefined and fixed returns.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  8. #8
    Solid Member ionone's Avatar
    Quote Originally Posted by Bogdan G View Post
    Please explain this further. I dont think i understand
    The price you can buy varies from 0 to 100, depending if the price is far from the last close : if the price is far up than the previous close, it will more likely stay up, so the price will be higher for "buying > close". If the price is really high the price will nearly be 100 meaning if you win at 100, you win nothing, but if you lose ŕ 100 you lose AT LOT

    so it's always best to buy under 50, that way you gain more if you win and you lose less if you lose.

    the closer you get to the day's close, the bigger the changes are represented : for example if the difference from the previous close is +50 at 8h00, at 15:30 you will only need a difference of +5 (for example) to have the same "price". So changes are majored as the time goes by.

    hope it is clear now

    Jeff

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3