mstanden Posted December 29, 2010 Report Share Posted December 29, 2010 This looks interesting... http://www.tunnel-trader.co.uk/RichLife/TunnelTrader.html Anyone have it/know anything about it please? l know its binary betting thats all and John piper is an expert at it. Cheers. Quote Link to comment Share on other sites More sharing options...
Diesel 10 Posted December 30, 2010 Report Share Posted December 30, 2010 (edited) At one point in his speal, he teases a binany trade that can incur some loses but when it wins, it wins 20-1! I'm not sure if this is what he's referring to because I came up with this idea completely on my own, but here goes. Binaries measure the likelihood of a currency being at a certain point at the end of the trading session that day. They are one day options and are based on distance from the strike price. Often it is at 5% indicating a very low likelyhood of it getting there (i.e. price of the currency might be 30-50 pips away from the strike) or 95% indicating a very high likelyhood (in this case it would be say 30-50 pips in the money). Now of course, often it is not 5% or 95%, but something in between. We are focusing on the times when it is either far out of the money or far in the money... He's my idea, you put on the trade buying if 5% or selling if 95%, but the catch is you initiate the trade RIGHT BEFORE A HUGE NEWS ANNOUNCEMENT! If the news announcement goes in your favor, the price skyrockets towards being in the money and often will even move into the money quickly! If the announcement goes against you, there may still have the opportunity to get out quickly with a couple % but usually you would lose the whole 5% bet. So you're risking 5% to make potentially 95% (100%-5%) and all you need is 2 wins in 20 tries to make money... I live in the US so binaries aren't really happening here. However I have actually observed this occuring and you should win a heck of a lot more than 2 times in 20... also, nothing is preventing you from exiting the trade at less than 95% net profit. You could conceivably just exit on the spike after the news announcement. Do your own due diligence because binaries may have changed since I observed a year ago... However, something quite interesting to think about for my good friends overseas. Happy New Year! Diesel 10 Edited December 30, 2010 by Diesel 10 mstanden 1 Quote Link to comment Share on other sites More sharing options...
⭐ fscrp Posted December 30, 2010 Report Share Posted December 30, 2010 There are some things that are against you during news events - spread increases, price slippage, low liquidity (for ECN brokers), bucket shop shenanigans* (they allow the order to open but not close in profit, when price moves against you then it closes). *Not all market makers play games. I have been live with FXDD US for a few years now and have not had problems. Quote Link to comment Share on other sites More sharing options...
Diesel 10 Posted December 30, 2010 Report Share Posted December 30, 2010 There are some things that are against you during news events - spread increases, price slippage, low liquidity (for ECN brokers), bucket shop shenanigans* (they allow the order to open but not close in profit, when price moves against you then it closes). *Not all market makers play games. I have been live with FXDD US for a few years now and have not had problems. This is BINARY OPTIONS, not forex. A totally different vehicle. Quote Link to comment Share on other sites More sharing options...
mstanden Posted January 10, 2011 Author Report Share Posted January 10, 2011 Bumping this! Thanks. Quote Link to comment Share on other sites More sharing options...
mjs Posted August 6, 2011 Report Share Posted August 6, 2011 Anyone got anything on binary trading please? Thanks. Quote Link to comment Share on other sites More sharing options...
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