I think he is implying that running a casino is a scam too. If you prey on people’s ability to analyze numbers without supplying them with hookers and blow, its a scam in my book.
Quite true. The word "scam" is much too loosely used in forum conversations, in general. It's a lot more succinct than saying things like "Dreadful and unnecessary way to trade given that there are always better options available", but that doesn't make its usage in the intended sense strictly accurate, I suppose.
nadex binary options are good if you have a system for trading the otm contracts but trading the itm or atm contracts is retarded and has a terrible r:r
If you can be the other side of a dreadful and unnecessary way to trade, it can be a quite pleasant and profitable way to trade! Which you can do on Nadex and what makes it different from the dozens of unregulated binary operations that are indeed scams.
You can invest your cash into an ABS backed by a pool of payday loans. It’s very pleasing returns-wise and is totally legal but that does not make payday loans any less predatory.
Well, there is something to it - gambling is a form of entertainment and nobody tries to pitch it as a way to invest (at least I hope so).
If you don't mind could you give an example of a better way to make a Nadex type trade? Lets say I think the weekly Dow price will close higher than the current price,even if only by 1 point.What would be a better way to make this trade factoring in with Nadex my trade only has to be right by 1 point and I don't have to worry about getting stopped out if the price goes the opposite way before closing in the direction I think it will?
Well I manage to ping IG's MM often enough that I don't feel that bad. Anyway I'm not sure that Nadex binaries are any worse pricing-wise than a similar OTC exotic would be, especially when you account for the typical higher cost retail has to pay and the fact that you can trade in real time for smaller amounts. It certainly attracts the gambling clientele and not by accident, one of my biggest gripes is their gambler mentality at the expense of actual traders.
As other posters pointed out, I don't think there's a good way to be consistently profitable using Nadex as their owner intends you to. Which isn't the same thing as saying there aren't ways to be profitable while still following the exchange rules.