Binary Options

[surfymark]

Anyone trading in Binary Options?

M

[stongle]

On and off.

[sidicks]

stongle said:

On and off.

Do you mean 1 and 0 ?

[stongle]

sidicks said:

Do you mean 1 and 0 ?

Yes, it's facetious Friday here but I've been having a bit of a cubist day (lack of Stella Black at lunchtime and internal funding spreads melting on me).

[sideways sid]

Binaries seem like a great idea for the provider; providing a nice spread to the provider from punters who believe that they are using a fixed-loss instrument and can therefore bet in larger multiples. Not such a great idea for the punter though.

[NorthernBoy]

I've seen some ridiculous strategies by retail investors in binaries, most of which are equivalent to betting on Manchester United to win at 200-1 on when they are 2-0 up with five minutes to play.

No matter how patiently of carefully I explained the error behind their calculations, they never could wrap their head around expectation values.

May I ask what you are thinking of doing in them, and why you'd not use vanillas?

[fido]

They sound simple ('binary') but like their OTC cousins the 'digital' they are actually a geared combination of two vanillas. Skew-tastic!

[chris7676]

sideways sid said:

Binaries seem like a great idea for the provider; providing a nice spread to the provider from punters who believe that they are using a fixed-loss instrument and can therefore bet in larger multiples. Not such a great idea for the punter though.

Exactly, for those reasons I'm out.