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  1. #1
    Rookie Member mavrix's Avatar

    see how all the binary options brokers gets dobule payouts than you... !!!

    I'm sure that everyone here is aware to the fact that when you trade binary options you make your trades against the broker and not against other people like in a real stock market and that conflict of interests between the broker and the client leads to this simple conclusion: the broker always want you to lose (no matter what he tells you) because the only profit he makes is from his clients losses...

    after this short well-known introduction we can see how when you buy binary option from your broker his risk/reward ratio is almost and sometimes more than twice than yours:

    let's say you want to trade on the FTSE 100 future and the payout you can get is around 70% (I've checked it now on 24option but it's more or less the same at any broker):
    if you invest 100$ on call option:
    - the rate at the expiry higher: you earn 70$
    - the rate at the expiry lower: you lose 100$
    this is why the payout is 70%: payout= profit/risk 70$/100$=70%
    but what about the broker's payout??
    it's always the opposite than yours and in our example:
    - the rate at the expiry higher: he lose 70$ (this is when you earn=he lost)
    - the rate at the expiry lower: he earn 100$ (this is when you loss=he wins)
    we now can calculate his payout like we did before: payout=profit/risk and from the broker's side: 100$/70$= 143%!!!!

    it means that his payout is more than double from the client's payout... this is why it's so hard to profit in binary options in the long term.

    the margin in the binary options brokers is monstrous and it's simply because you always trade against the broker and not with other people the solution for it is to trade binary options in peer to peer marketplace and to create a world where people can write binary options and not only to buy them from the broker - eventually it will create much higher returns (95% and more) as it should be when you dealing with binary options spot (current asset rate) trading.

    by the way a shorter version to calculate the broker payout is simply by divide the number :10,000 bt the payout that the broker offers you: in our example 10000/70= 143% and if the payout is 75% than: 10000/75=133% - check it out and see yourself!

  2. #2
    Veteran Member randy1953's Avatar
    Good point I have heard that aa new kind of peer to peer binary options may be coming to the market place.
    The brokers would hate to see it happens as they would have to kiss good bye to all the high profits they make and begin to live like normal people do.

    This is why if you have a few good strategies you are a hundred times better off trading Nadex or Cantor where your profits can exceed 200%. I would trade them however I get stuck with the pricing and how to execute a trade. Nadex platform makes me dizzy watching all those strike prices flashing at you. Cantor is a little better with their spot option. What I need is someone that knows how to trade Nadex by my side for a while until I get the hang of it. I will be doing this shortly the reward is well worth it as it is so much higher than these offshore bucket shops which yes I am trading now but at least I am with a good Forex broker.
    NoaFX is very good I been trading my super accurate BB strategy all week I have grew my account on a average of 20% per day. Many of my winners are very close and NoaFX does a good job with their pricing.

    My only losses so far been my mistake when I enter a few centiseconds(1/100 of a sec) past my candle close.
    Last edited by randy1953; 02-03-2016 at 06:15 AM.

  3. #3
    Rookie Member mavrix's Avatar
    I've made a little search online and I believe that this new kind of p2p you talking about is tradequal – I'm checking it and it looks promising till now.

    I totally agree with your comments regarding nadex and cantor – they have a problematic ux and they aren't talk and look like binary options at all – terms like buy and sell instead of call/put and 0-100 instead of percentage payouts are some of the reason that make it harder to handle plus the strikes issues you mentioned.

    I hope that the binary options will finally start to move to the p2p methods and that the brokers will kiss goodbye to their crazy profits

  4. #4
    Rookie Member Xeno's Avatar
    That's why I personally always calculate the percentage of trades that I have to close ATM with a broker in order to earn.

    I recommend start using some strategy and master it on demo. Sometimes it lasts for weeks or even months, but it's the only way to have profits from BO. Market is not a friendly place, haha

    However the idea of p2p options seems really nice. I'm looking forward to trade on such a platform one day

  5. #5
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by randy1953 View Post
    Good point I have heard that aa new kind of peer to peer binary options may be coming to the market place.
    The brokers would hate to see it happens as they would have to kiss good bye to all the high profits they make and begin to live like normal people do.

    This is why if you have a few good strategies you are a hundred times better off trading Nadex or Cantor where your profits can exceed 200%. I would trade them however I get stuck with the pricing and how to execute a trade. Nadex platform makes me dizzy watching all those strike prices flashing at you. Cantor is a little better with their spot option. What I need is someone that knows how to trade Nadex by my side for a while until I get the hang of it. I will be doing this shortly the reward is well worth it as it is so much higher than these offshore bucket shops which yes I am trading now but at least I am with a good Forex broker.
    NoaFX is very good I been trading my super accurate BB strategy all week I have grew my account on a average of 20% per day. Many of my winners are very close and NoaFX does a good job with their pricing.

    My only losses so far been my mistake when I enter a few centiseconds(1/100 of a sec) past my candle close.
    I hear you on the nadex expiries, what I do is focus on the ATM option... so long as the asset price is below my target entry, then hold to expiry. Sometimes I close early, but not if my option moves deep in the money.

  6. #6
    Moderator Kolyo's Avatar
    NADEX can be a good way to expand your trading strategies and styles however it needs a bit of practice to unleash the powever of these a bit more complex binary options.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  7. #7
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Kolyo View Post
    NADEX can be a good way to expand your trading strategies and styles however it needs a bit of practice to unleash the powever of these a bit more complex binary options.
    yeah, but once you get the feel for strike prices, make money on a credit position and use advance strategies like hedging/covered spreads it's on like Donkey Kong... prooooo ah futs!

  8. #8
    Rookie Member mavrix's Avatar
    Update on the new exchange "Tradequal":
    Well I've opened an account there and start trading and you really should have a look and check it yourselves
    First of all it's an exchange where you trade on spot options but it's much easier and understandable than nadex/cantor
    I think it's quite new so the liquidity is still low but I didn't saw a payout that is less than 85% - for all assets, I guess they work with market maker/s who giving this low (but still much higher than the rest) payout.
    I wrote options there for 95% for the buyer (105% for me) few times and got matched like half of the times. You can understand quickly how to write options and for me it's very intuitive.
    It doesn't have 60 seconds and the rest of this gang but it only make sense cause those duration are complete "flip a coin" game and it's not for real trading.

  9. #9
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by mavrix View Post
    Update on the new exchange "Tradequal":
    Well I've opened an account there and start trading and you really should have a look and check it yourselves
    First of all it's an exchange where you trade on spot options but it's much easier and understandable than nadex/cantor
    I think it's quite new so the liquidity is still low but I didn't saw a payout that is less than 85% - for all assets, I guess they work with market maker/s who giving this low (but still much higher than the rest) payout.
    I wrote options there for 95% for the buyer (105% for me) few times and got matched like half of the times. You can understand quickly how to write options and for me it's very intuitive.
    It doesn't have 60 seconds and the rest of this gang but it only make sense cause those duration are complete "flip a coin" game and it's not for real trading.
    Just to be clear, Tradequal is not CFTC regulated, not based in the US, located in the Grenadines and is at this time and unknown and untested broker. I'm interested, the buy/write options is pretty cool, I'll have to check it out.

  10. #10
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Michael Hodges View Post
    Just to be clear, Tradequal is not CFTC regulated, not based in the US, located in the Grenadines and is at this time and unknown and untested broker. I'm interested, the buy/write options is pretty cool, I'll have to check it out.
    and it is not spotoption.

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