What is your opinion on binary options?

What is your opinion? Do you think there is money to make out of it? why? Is it just gambling, or do you need certain skills to be good at it?

 

Just gambling, but higher deal costs vs. traditional instruments.

 

Just gambling, wide markets, no edge. IMO, stay away.

 

Just gambling.

 

if any of the platforms allow you to make markets then this is an opportunity if you understand options pricing.

 

Those who say it is gambling are correct. Not a two-sided market (you can only "buy" the binary option, you cannot "sell" the binary option). Generally any two-sided market is going to be fair.

 

For the ones who think trading is gambling and/or the ones who don't have enough money to trade.

 

You can 'buy' and 'sell' in binary options. The only problem is the wide spread (slippage) in the binary in which techically strip away all your edge.

 

NADEX allows you to make markets. They also offer an API.

 

Help me understand because I might misunderstand binary options.

From Nadex's website:
"Binary options ask a simple yes/no market question. Will the price of gold be above $1700 at 1:30pm?"

My understanding is that you have the choice of buying that the price of gold will be above $1700 at 1:30pm or buying that the price of gold will be below $1700 at 1:30pm. You can either buy something that resembles a call or either buy something that resembles a put.

You aren't allowed to sell the binary option, ie be the house. Am I understanding this correctly?