I am referring to them as "bets" but they are anything but. I have only had experience with one broker (Pocket options), and some of the trading features are: You are able to do conditional orders based on price or time. You can also box positions meaning you can take a short position against a long. I had a scenario yesterday where my hedge short was hit, made money, and then price rebounded and I made money on the long as well. This is so much better than stop losses and honestly the fact you can't do this with regular options goes to show you how BS the entire regulated industry is set up. I can double down meaning basically I add another bet at the current price. I can also extend time by increasing the bet. What I would like to see is being able to close at 1/2 profits or losses. This could work as they would just need the equal amounts of counterparties to also have selected to do the same. Or just take profits/losses at anytime, although that would lead to me micro managing trades so maybe not. Already binary options are miles ahead of regular options and unless they find a way to eliminate fees, and the spread I don't see how they can compete. The idea that I am trading against a counter party versus a money maker who is skimming off every transaction is a game changer.
What would that be that you can't do with regular options? Maybe try to post a chart of your binary trade... and see if anyone can do better or replicate it with a spread. Funny that you criticise option trading and promote binary...
The difference is with binary you get a 92% payout by being .01 ITM. How much would you get from regular options for being .01 ITM? The bottom line is if you are correct directionally the you should get paid. If I say APPL is going to be above the current price in 30M then I get paid. With regular options your only hope is a spike in IV because you not only have to hit your strike, you also have to overcome the premium...AND time decay!
not anymore especially with crypto pairs and payouts in crypto. Old school options are a dinasaur.... unsustainable imo if they do not adapt ..look how long they took to get rid of floor trading? What was that last year ? Binary options today can do to institutional options what Bitcoin did to gold.
The main problem I see here is that you treat regular options as a way to profit from your actions and that should never be the case. Options are an insurance on the underlying, so if you don't treat them as that you will definitely be in the situation you describe, an unfavorable position against the market maker with a time decay against you. Binary options are not popular because people can simply just go to the futures market and play to guess the direction of a market with a stop loss. It will be exactly the same. Binary options have a delimited short time, you must be right within that time. It is very much like sports gambling. In the futures markets you won't be kicked out of the market until you exit at your will, that is a massive difference. You can always average your losses in the futures market with more positions if given the right time to do it.
Binary are better than futures....no conracts..interest hold over fees whatever...no comparison...binary is more like your personal atm open 24 7 I agree insurance was the original concept of options...but they are so over priced when compared to home insurance. I just started a topic about that.