I have nothing to do with options, I look at it from pure casino perspective - I have a game that paid me 0,92x on win, and I lose 1x on lost. Which means I would need quite good odds on my side. But about futures - what you talking about ? what overnight fees in normal futures ? (you won't find it with most brokers, maybe IBRK, and not talking CFDs od course, it only would be possible margin increase), when you trade short term trading roll over doesn't bother you, margins are super low (up to quite large positions you can get 1/10 of CME margins for intraday, which already gives you too 1:100-300 leverage, already too much in most cases). Commissions also are low, for most products less than 1 or eve half of tick + you can lease seat totally cheap. And what spreads working agaisnt you ? If you trade normal stuff spreads are basically bid-offer... I don't know man, you clearly see problems where there is not much problems. If you not able to cover costs for tradfi let's say futures trading, that basically means you edge is super thin (which is still ok and if you find way to use it in better enjoinment - good for you) But my question was more like - from pure usefulness perspective - or strategy implementation, I don't see much scenarios where simple directional trading on binary options would be better than futures.
I don't see how binaries are better than outright directional trading. That expiration time is what kills you. You have to predict TWO THINGS! (price and time). How is this better than say trading futures outright? Instead of just say, long Nasdaq in direction trade; in binaries you have to predict if it's above/below certain price by certain time. You can manage risk on directional trades with stops, which ironically you are adding a time variable in there (that's why people would use wide stops or even no stops to increase their chances.) Plus what broker are you using for this? I realize you're from Canada, but US citizens should stay away from that crap. You broker could literally be stationed in middle of rice fields somewhere. And you are serious about trading putting your money in places like that? Here if shits go down, I'll fly to Chicago and know where the hell my broker's office is. We also know where CME is if we want to cause a scene. We might get arrested , but the point is everybody's within reach and everything is regulated. So stop being a damn ghetto degenerate, and upgrade to a respectful degenerate and just trade futures if you can't afford the size.
I don't know l...never traded futures but I would choose them over options probably. I don't like paying fees that's the main part... especially commissions to the broker. Having no time decay is also a plus...time decay is the biggest hurdle in options.
That's kind of a nonsense statement of yours. Probabilities are baked into pricing. If you think otherwise why don't you sell binaries, according to you they seem too expensive for the risk, taken.
I don't know how binaries model work. If I sell equivalent 1 contract of nasdaq binaries, how is it different then selling outright NQ? Give me some numbers
No time decay, but it has expiration right? I mean i don't know what the right term is, but that's still technically "decay". This is why swing trading is "easier" than daytrading, the fact that you can hold your trades longer means your chances is increased, vs having to be forced to be flat by certain time. Sounds to me binaries is just another way to "daytrade". Your time is whatever time you decided to initiate your position on. So my question to @M.W. and to you too is how are tey similar or different? WOuld like to see the math behind it. Give me an equivalent position scenario
Those numbers are irrelevant. I asked if you think an asset is mispriced (overpriced) and you have the opportunity to sell it at that price to someone else, would you not want to do it?
Of course I would sell. So now the question is, if I sell NQ and NQ binary: sell 1 NQ 15373.00 set stop loss ($400) 1 NQ binary touch 15350.00 in 4hrs contract size=$400 equivalent of risk No way both are equivalent in terms of probability of profit...