Right, the only two operators of share exotics were www.betsfortraders.com and www.betonmarkets.com. SocGen's clickoptions closed some time ago. betsfortraders.com was taken out by a friend of mine who shares my IP address... BFT was offering DNT bets on stocks such as WMT at 80 on the vol-line, when WMT vol was in the teens. Pricing for a one week 45/55 WMT double no touch was 38/100 with the shares at 50. Pricing should've been 96/100. The doubled the price after realizing they were getting railed, but it was still huge edge at 76/100. It's very difficult for market makers in the American exotic bets, especially on individual shares. betonmarkets recently dropped individual equity exotics on all but the pick-em bets.
I'm sorry but I am very noob. You mean a binary where your only choice is direction? Another thing I don't fully understand is either you win or lose, right? So you win, you win 70% from dealer or 100% from nadex or exchange based binary operator. Regardless, you still need to nail direction correctly. Make 70 or 100% or lose. Why ismaking 100% such a huge advantage? Sorry for dumb question
You only need to be itm a tick, hence the term, binary. 1 or 100 ticks itm doesn't alter the payout. A new strike is generated as you place the trade. 1301.22 on the SPX as you place a bull binary. If the SPX is above your strike you receive $170 on your $100 investment, but lose $85 of your $100 if it falls a tick below the strike. Binaries are bets on probability. If the bet is a coin flip then your long term expectancy should see the return of your $100, no more, no less. (0.50*$70win) - (0.50*$85lose) = -$7.50. Long term your $100 returns $92.50. Half the time you win $70, half the time you lose $85. Is your edge greater than your negative expectancy at anyoption.com?
Thanks for the explanation. I don't have an edge, so no, but I'm sure some of the savants here shouldn't have any issue with something as simple of picking direction for the next 10 minutes to an hour. At least judging from their posts.
Decent interface and they're one of the biggest bookies in the World: http://financials.williamhill.com/
Thanks, I see these guys are everywhere. Intrade is another one offering more "exotic" type bets--snowfall, etc.
I wonder how much money the bookies took in on the Patriots to win the Super Bowl, bet down almost nothing. Go Steelers! http://sports.yahoo.com/nfl/blog/sh...-to-win-Super-Bowl-Falcons-Eag?urn=nfl-303712
I use those guys regularly both as speculation andyo hedge other positions. Never any Issue plus it's loads of fun. Check em out cause at 70% gains per hour there really is nothing else like it.