Binary options...better than 50/50 chance ?

Discussion in 'Options' started by rfriend73, Oct 30, 2012.

  1. wow, that's weak. Their pricing (barring that exclusion) is poor, anyway.
     
    #41     Nov 11, 2012
  2. kapw7

    kapw7

    Saxo is advertised as a respected OTC fx dealer. The screenshot is from my (retail) account:

    [​IMG]
     
    #42     Nov 11, 2012
  3. Surprise

    Surprise

    yes .
    They pay 67-70 $ if you risk 85$ on their up/down binaries , but here is a thing , sometimes the long term binaries weekly , monthly strike price get skewed , ie : lets say the EUR is now at 1.27 , the daily strike price is at 1.27 but the monthly strike level is at 1.26 , it happens all the time what you think ?
     
    #43     Nov 11, 2012
  4. Surprise

    Surprise

    If anyone is interested take a look at stockpair dot com they have binary options on "stocks-pairs" , shortterm and longterm , didnt try them though , that's the problem with these brokers like anyoption i don't know if they are trustworthy ...
     
    #44     Nov 11, 2012
  5. sle

    sle

    I take it you can only buy these options, not sell them?
     
    #45     Nov 11, 2012
  6. Surprise

    Surprise

    Will take a look Tom
     
    #46     Nov 11, 2012
  7. Do not trade any financial instrument unless you can get quotes for both buying and selling so that you can see the spread.

    If they quote only one side, you are likely paying at least 2 or 3 percent hidden commission bundled into the price.
     
    #47     Nov 11, 2012
  8. sle

    sle

    One-sided markets are fairly common in bespoke world and even if the other side is there, nobody expects it to trade (e.g. knock-out options). In the end, no matter what is "bundled into the price" if my model puts the fair value at a premium to the single-sided offer or at a discount to a single-sided bid, I should trade it.
     
    #48     Nov 11, 2012
  9. respectively fair price could be even above the ask of the one side quoted taylor made option.. its all relative... fair to their model might not be fair to yours or mine or reality.. insurers sell what hey consider "fair" priced insurance and scream when it turns out not to be so fair..
     
    #49     Nov 11, 2012
  10. sle

    sle

    It's a part of their business model - when the going gets tough, they try to squeeze a tiny bit more by refusing to pay. Awesome industry.
     
    #50     Nov 12, 2012