Hi everybody.. New to Trading. Can somebody tell me he difference between Forex and Binary Options? Which is better? Thx
if you don't know the intimate details of what vanillla, binary, etc.. are.. don't trade and just start reading... EVERYTHING.. or else you will just pay more to understand later
that link sounds like a party of people that think they have found a product to make up for their lack of trading skills.. Ask yourself this.. why do institutions put out new products? transaction fees.. follow the money... either learn to make markets in binary options .. be a vol trader or liquidity trader.. this asymmetric payoff structure of binary options is the same in vanilla options except for the fact that vanilla options are better because their payoff is unlimited.. i would rather have asymmetric and unlimited payoff myself.. Oh and by the way.. Market makers sell options yes.. (liquidity function) but they usually fixate themselves in such a way where at some percentage move in the underlying they are long volatility.. if you really think that thread that was posted was a good one.. keep reading move is my suggestion.. i do know non the less there is money in binary options..
Good question Let me ask you 1 thing if you read that 1 thread that was posted about there being no greeks related to binary options do you really think instead of binary option it out of the money that goes further out of the money and time passes there is no lost in value I e data
i was sniffing around.. found this article... read it .. its good http://www.quora.com/Why-is-the-CBO...et-illiquid-large-bid-ask-spreads-low-volumes after reading it.. you might think to yourself... is my broker acting as my market maker? Interactive broker has its own MM platform.. called SMART i'm sure these so call Binary options brokers are exploiting the lack of liquidity in their favor.. thats my bet