Binary Options Are a Risk Not Worth Taking

Binary Options Are a Risk Not Worth Taking
Rating:5 (1 vote cast)

The Latest Trick to Separate You from Your Money

You have to hand it to Wall Street, they are never at a loss for finding new ways to get people to speculate with their hard earned money. While investing is generally seen as a positive way to grow one’s money over time, day trading and other speculative activities are very risky, particularly for the unseasoned trader. The latest promise of fast money comes in the form of something known as binary option trading.

What Are Binary Options?

Binary options are extremely short term options traded on a security. They are an all or nothing proposition bet on the price movement of a particular security (such as a stock or currency pair). The investor is making an investment on the price of a particular security with the hopes that the currency will move in the direction that they believe it will in a set period of time. This is best explained with an example.

how-to-trade-options

Investor A believes that Stock A will increase from its current price in a short period of time. The current price per share sits at exactly $10. The Investor purchases a binary call option because he or she believes that the stock is going to go up in the span of say one hour (binary options have a variety of expiry time options). The Investor selects the amount to invest (as low as $1) and places the trade. If the investor is correct and the price of the currency increases by a greater amount than the investor gets his or her money back plus a percentage. That percentage can range from 70-95%. If correct on a $100 investment, the investor would receive between $170 and $195 back on his or her investment.

What Is The Downside?

The trouble with binary options is that they are literally an all or nothing proposition. If the Investor in the above example is wrong about the price of the stock at the end of the hour, then he or she is going to have to sacrifice the full $100 invested. That is potentially a very big loss! This means that the investor has to be correct on his or her predictions well over 50% of the time to be a long term winner. That is difficult to do when the expiry time on these options is so short.

Just Like Gambling

Binary option trading is just like gambling in that it is an all or nothing proposition. The investor either earns the full return (on a correct pick), or loses it all on an incorrect one. Also like gambling, the illusion of options is given. When trading binary options the investor is able to choose call (up) or put (down) options on a variety of different securities. This gives the investor the sense that he or she has some control over what they are doing. In reality, it is mostly random. The investment will win sometimes and lose other times. In the end, the investor ends up losing because of the fact that they do not get a full 100% return on their correct picks.

Also, similar to gambling, the Investor is having to compete against the house which in this case is the binary options broker. Many of these brokers also offer investors bonuses for making their first deposit and trading often. This is similar to the bonuses that casinos offer to their loyal players. Binary options are best avoided by everyone who doesn’t want to lose money.

Buffett Bots Review | Is Buffett Bots a Scam?

Buffett Bots Review | Is Buffett Bots a Scam?
Rating:4.64 (14 votes cast)

You may ask: “Is Buffett Bot a Scam Software?” The answer is provided by our honest review.The 30 day free trial offer for the Buffett Bot software looks like a good opportunity to try something different. Results of trading with the automated system have proved that it performs very well and it is not a scam. Read more of this Buffett Bot review to find out about its unique features, trading advantages and how to get started.

What is Buffett Bot Software ?

This is one of a kind binary options system that has managed to attract the attention of the world because of its uniqueness. Jeremy Fin, who is the owner of Buffett Bot system is very honest with his product. He has actually come out to reveal what he knows best concerning his trading method.What’s more, he has come out openly to declare that even though his Buffett Bot software copies the mind and investment tactics of Billionaire Warren Buffett, this system will not make you a Billionaire. That statement caught our attention, and it was the reason why we dug deeper into the details to try finding out what this software had to bring to the table.
We can certainly declare with 100% confidence that Buffett Bot method will fulfill what has been promised in the official website.

dau-tu-gia-tri

Features of Buffett Bot Software ; Review & Results

(a) 500 automatic trades in one day

We were first told that this signals App was able to automatically execute between 400 and 500 trades within a period of 24 hours. We doubted these claims. But when we put Buffett Bot software to the test, it surprised us by executing trades like Jeremy Fin had promised. The number of automatic trades ranged between 400-500 in 5 straight days, most of which turned to be profitable. This means that we were also able to hit the promised $1,978 in some days. Even in our lowest trading days, we were still able to take a tidy profit home. This is why we have concluded that BuffettBots App is not a scam.

(b) It’s free for the first 30 days

There’s a trend we’ve seen in scams out there. These ones tout themselves by stating that they are free to use forever. But in reality, they will swallow your money at a faster rate than you can profit. In fact, sticking with such losing system would see you losing your investment to compensate for the ”free ”offer. Such a software isn’t free. Instead, it costs the entire amount you shall deposit with their rogue brokers.

However, The Buffett Bot program won’t steal money from you. You can have it for free in 30 days after which you will take 95% of profit and leave the rest to the broker thereafter. That means this BuffettBots.com software will charge you 5% of income you get from every successful trade. This is still fair given that this App doesn’t scam its members. It is also fair because good things never come for free. You’d be safe paying for something than getting it for free.

(c) 24/7 Buffett Bot Support is Real

Most of the scam software we’ve reviewed out there don’t have some kind of support to offer. The owners are usually too consumed by their bogus sales tactics that they forget to mention or provide a place for customer support.
Also, before reviewing any binary options programs out there, we always test support to see how well they respond. 70% of them have failed, and thus we have labeled them ”scam” — of course going by complaints we receive almost every other day.

With Buffett Bot software, you can be assured to contact them through various means any time you have a question or concern. Their response is timely indeed. They offer live technical support through chat (something that all members have access to), plus full-scale support by phone. No one will hang up on you when you get to ask the hard questions.

(d) Availability

You can use Buffett Bot signals from anywhere you want, except when you’re in a couple of countries which aren’t supported. These countries include India, Nigeria and Uganda. There are talks of including these countries soon. This is yet another evidence that Buffett Bot APP is not a scam since every scam out there targets all countries to maximize revenue.

Advantages of the Buffett Bot App

This trading App is 100% risk-free. You won’t be asked to pay a single cent to use it. Also, at the end of the 30-day period, you will only be working on a 5% revenue share model which is fair. That 5% goes to the owner of Buffett Bot as a token of appreciation.

Secondly, Jeremy Fin doesn’t take members fore granted. That’s the reason he has placed premium support to answer questions you may be having once you sign up. They clearly have your best interest at heart.

Thirdly, you have a fair chance of succeeding in your binary options career when you utilize Buffett Bot APP to maximum effect. Keep in mind that this system was created after analyzing Warren Buffet’s investment methods in 6 years. There is no way you can lose here.

So, is Buffett Bot software a Scam?

No, this isn’t a scam. If you ever come across any review telling you how they lost money from this BuffettBots Method,then it may be by haters.

Did you know that all the scam binary options software out there didn’t use any regulated broker to do business with users.The problem with non-regulated brokers is that they operate by their own rules. If they decide to shut down everything and disappear with your money, no one will have the right to pursue them. After all, there are no rules.However, Buffett Bot app only uses CySEC Regulated Brokers to keep all members safe. We have verified this.

buffett-bot-review

Pricing- Shall i Join ?

  1. Just sign up here with BuffettBots.com website
  2. Fill with your name and email address to gain instant access into the system.
  3. You will only be required to fund your account with the amount you want to invest.(Min Deposit $200 -250)

Conclusion – The Buffett Bot Software is Not SCAM !! Tested An Proven

You can fully rely on Buffett Bot signals. Forget about following every financial news you come across on the internet. Manual methods are time consuming and not accurate 90% of the time. Therefore, in this review, we have fully endorsed Buffett Bot software for anyone intending to trade binary options to earn a living. Also, we haven’t found any hint to suggest that Jeremy Fin isn’t real or that his method doesn’t work. You can definitely count on him.Before you sign up with any new auto-traders check our scam binary software’s page to check the authenticity.Share your results with the Buffett Bot App below in feedback section.

Buffett Bot Video Explanation

Reference and Further Readings:

  1. Neural networks for financial forecasting(E Gately – 1995)
  2. An automated FX trading system using adaptive reinforcement learning(MAH Dempster, V Leemans – Expert Systems with Applications, 2006)
  3. Designing safe, profitable automated stock trading agents using evolutionary algorithms(H Subramanian, S Ramamoorthy, P Stone… – Proceedings of the 8th …, 2006)
  4. Adaptive conceding strategies for automated trading agents in dynamic, open markets(F Ren, M Zhang, KM Sim – Decision Support Systems, 2009)
  5. Optimization of Automated Trading System’s Interaction with Market Environment(P Tucnik – Perspectives in Business Informatics Research, 2010)
  6. Economic agents for automated trading(C Preist – 1998)
  7. Evaluation of automated-trading strategies using an artificial market(K Izumi, F Toriumi, H Matsui – Neurocomputing, 2009)
  8. Automated trading with boosting and expert weighting(G Creamer, Y Freund – Quantitative Finance, 2010)
  9. The legal basis for stock exchanges: The classification and regulation of automated trading systems(I Domowitz, R Lee – Pensylvania State University–Oxford finance group, 1998)
  10. Evolving neural networks for static single-position automated trading(A Azzini, AGB Tettamanzi – Journal of Artificial Evolution and …, 2008)
  11. Automated trading in agent-based markets for communication bandwidth(N Vulkan, C Preist – International Journal of Electronic Commerce, 2003)
  12. An agent strategy for automated stock market trading combining price and order book information(GC Silaghi, V Robu – University Faculty of Economic …, 2005)

WAIT UNTIL EXPIRATION OR GET OUT EARLY

WAIT UNTIL EXPIRATION OR GET OUT EARLY
Rating:5 (1 vote cast)

No one can give you a hard and fast rule about when to hold a binary option until expiration and when to exit early. It’s a personal choice. Generally people exit early for one of two reasons: to take profits or to get out with a smaller loss than the maximum (the amount you paid to enter the trade).

Here’s a situation where traders often take profits rather than holding on. Let’s say that same EUR/ USD > 1.1300 jumps up 12 points and is now in the money.

If it’s in the money, the binary option has likely gone up significantly in value, maybe to $80 or more. If you have a binary option that is trading at $90 with three hours left until expiration, do you want to hold out for that last $10 of potential profit? Or do you take the actual profit you now have? After all, if you bought it at $30 you’ve just gotten a nearly 200% return in a few hours. Not bad for a day’s work, as they say. (Of course, that’s a hypothetical result and not meant to represent a typical trade on Nadex. Your actual results may vary.)

WAIT OR GET OUT EARLY

This isn’t a suggestion of what you should do, but many traders would do what old floor traders who came up in the ‘70s and ‘80s call the Steve Miller move: they take the money and run. (Remember that song?) They weigh the two choices: risk losing some of their gains while they hold out for a little bit more versus locking in those gains and giving up a chance to squeeze out a few more dollars. After all, you can always get back in with a new trade.

The same kind of choice would move some traders to get out if their $30 binary option went down to $15 in value with no sign that the market was about to turn upwards and rally. In that situation, the question is, is it better to admit the trade didn’t go as you expected and salvage some of your money than to lose it all clinging to an increasingly faint hope?

You know, that’s important enough to repeat. The purpose of trading isn’t to prove yourself right. It’s to make money.

So when should you hold on till expiration? There are multiple scenarios, and only practice will tell you when you want to hold versus exiting early. But if that EUR/USD did a slow but steady climb to 1.2998, then 1.2999, and now there’s about ten minutes left, you’ll be facing a situation where your binary has already lost some value but is just one tick away from being in the money and worth the full $100.

There’s no right or wrong choice, but can you see why some would hold on to give the market a chance to gain that last tick? You already know your maximum loss. It’s the $30 plus fees that you paid up front. If trying for that last tick is worth $30 to you (versus the $20 or so you’d lose if you exited early), then hold on to the binary until expiration.

Either way, it’s your choice. A choice you can make knowing precisely what the worst case scenario is. That’s the point of binary options trading. Limited risk just might remove some of the limits on your own sense of confidence and possibility.

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BINARY OPTION’S PRICE AND ITS REFLECTION

BINARY OPTION’S PRICE AND ITS REFLECTION
Rating:5 (10 votes cast)

Who is an easy question to answer: it’s the market participants themselves. The buyers and sellers decide the price at any given moment based on their collective opinion.

Now let’s look at how those buyers and sellers determine price. Before a binary option expires at either $100 or zero, its price moves up and down as long as the underlying market moves (though not in strict correlation). During that period, its trading price may fall anywhere between zero and $100.

The price of the binary reflects the probability that it will expire “in the money,” meaning above the strike price. So in the case of our euro example: EUR/USD > 1.1300 (7pm). The price of the binary option will go up and down based on whether it looks likely to expire above 1.1300 at 7pm.

Can you see how all the factors that play into that probability will also affect the price? If it is hours from 7pm and the market keeps bouncing above and below 1.1300, it’s hard to say what is likely to happen. Anything could happen before 7pm.

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The price will reflect that 50/50 probability by being about $50 at that time. The best bid and offer may be something like 48-52. Let’s continue with the same example: EUR/USD > 1.1300 (7pm).

Imagine it is 6pm (ET), i.e. one hour before expiration, and that the underlying spot EUR/ USD FX rate is standing at 1.1290. If it is at 1.1290 an hour from now, at 7pm, the binary option will expire with a value of zero and you will lose whatever you paid (but not more).

Let’s think about the probabilities of where it can go in the final hour before expiration. Markets can go in one of three directions: up, down or sideways. Right now, it’s below 1.1300. So the chance of it staying below 1.1300 are good compared to other possibilities. It doesn’t have to do anything to get there. It’s already there.

If the market stays there, the binary option will expire at zero. If it goes down, the binary will also expire at zero. Then there’s the third possibility: that the EUR/USD rate will go up in the next hour and be above 1.1300 at 7pm. That’s one of three possible outcomes. And actually, it’s a little less than a one-third possibility, since the market could go up but then still be below 1.1300 at 7pm. In other words, it is reasonable to believe it is more likely that the binary will settle at zero than that it will settle at $100.

The pricing of the binary option will reflect the probability of the EUR/USD rate being above 1.1300 at 7pm. Since right now that is less probable than the market staying at or below 1.1300, the binary option might trade on Nadex at around $30.

This price would imply that Nadex participants (those actively buying and selling that binary option) believe there is only a 30% chance that the binary option will settle at $100.

Remember that Nadex doesn’t influence the pricing or participate in trading. The value judgments are made by the buyers and sellers. We’re just the exchange, making sure everything is done fairly and accurately.

So with the underlying market at 1.1290 at 6pm (ET), the market is likely to think there’s a smaller chance (about 30%) of the rate being above 1.1300 in another hour, and greater chance (about 70%) that it will be the same or lower than it is now.

So at 6pm, the answer to “will the EUR/USD exchange rate be above 1.1300 at 7pm?” seems more likely to be “no” than “yes.” The pricing will roughly correspond to that and be about $30 to buy the option and $70 to sell it.

Binary Options Trading 101

Binary Options Trading 101
Rating:5 (6 votes cast)

A BINARY OPTION ASKS A SIMPLE YES/NO QUESTION: WILL THIS MARKET BE ABOVE THIS PRICE AT THIS TIME? When the trade expires, if you were right about the market’s price, you get the full $100 value. If you were wrong, you’ll get zero. Zero or $100. No other settlement value is possible.

When you enter a trade, you pay some value between zero and $100 based on the probability of the binary option expiring with an answer of “yes.” You also pay a fee of 90 cents per option to enter the trade. If you are right when the option expires, you’ll pay another 90 cents as a settlement fee. If you were wrong, then broker won’t charge you the settlement fee. You can never lose more than you paid. And your maximum profit is $100 minus the amount you paid.

There’s a third way your trade can go. Suppose the option starts moving in your direction and its value goes up, but you aren’t sure it will stay there. Naturally, you might want to just cash out while you can and get some profit. You can do that. You just sell the option if you bought it or buy it back if you sold it.

You can also close your position before expiration if the trade is losing and you don’t want to stay in the trade. Maybe you want to cut your losses rather than risk losing the full amount. Maybe the market just isn’t doing what you thought it would. Whatever the reason, you can exit the trade before expiration.

So the question is a simple yes/no: Will it be or not be above the strike price at the expiration time? There are many ways to trade based on that question. It will take all your trading skill and acumen. But it won’t take more money than you decide to risk up front. Nadex doesn’t issue margin calls, ever. Brokers don’t have to. And you don’t have to worry about getting one. Since both buyer and seller put up their share of the option’s $100 value before entering the trade, it’s fully collateralized, meaning no leveraged debt.

This is a hypothetical example, so broker’ll leave out some of the finer details and focus on the basics. Let’s say you’re looking at a binary option based on the following question: WILL THE EXCHANGE RATE BETWEEN THE EURO CURRENCY AND US DOLLAR BE ABOVE 1.1300 ($1.13 PER EURO) AT 7PM TODAY?

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On the Nadex platform it would be written like this: EUR/USD > 1.1300 (7pm) Now let’s say you buy this binary. That means you think the answer to the question will be “yes.” If you are right, and the spot EUR/USD FX rate is higher than 1.1300 at 7pm (ET), the binary will settle at $100. If not, and the spot EUR/USD FX rate is lower than 1.1300 at 7pm (ET), the binary will settle at zero.

You’re probably wondering, what if the EUR/USD is exactly 1.1300 at 7pm? It will still settle at zero. (See the box to the right to learn how Nadex calculate that final price.) The desired outcome for every binary option is always “greater than,” so both “less than” and “equal to” get the answer “no.” The final price using the settlement calculations noted above creates what is called the settlement value. That’s the price we compare to the strike price, 1.1300, to say whether it is greater than, less than or equal.

IN SHORT, AT EXPIRATION BROKER COMPARE THE SETTLEMENT PRICE OF THE UNDERLYING MARKET TO THE STRIKE PRICE OF THE BINARY OPTION. IF THE MARKET SETTLEMENT IS GREATER, THE BINARY IS WORTH $100. IN ALL OTHER CASES, THE BINARY IS WORTH ZERO.

The calculation doesn’t consider whether the EUR/ USD was higher than 1.1300 at some earlier time. Brokers only look at the 7pm expiration. Since it’s possible for the euro or any market to spend all day above the strike price (1.1300) and then drop just before 7pm, it’s possible for a binary that looked ready to expire at $100 to end up at zero.

That’s one of the challenges of binary options trading but also one of the opportunities. If the market is even a tiny bit above 1.1300 at expiration, you still get the full $100. You get a substantial return on a small margin of difference. This difference is especially powerful in flat markets, where a market might not move up or down very much. With binary options, it doesn’t have to be more than a tick above the strike price for a buyer to get the full $100 payout. That’s because with binary options, as the name implies, it’s all or nothing. Unless you exit early.

Binary Options and Forex: The Perfect Match

Binary Options and Forex: The Perfect Match
Rating:4.46 (13 votes cast)

In binary options trading, by implementing the suitable strategies, traders are able to profit from the performance of the financial markets, no matter what the trend, bullish, bearish or side is. This fact makes Forex and binary options perfect for each other.The Forex market, being the largest market in the world today, is the place people trade currencies. Through binary options we can utilize some strategies to approach this market. The first great thing about binary options brokers is that they are much easier to use compared to the traditional Forex brokers on CFDs.
forex binary options

The second great thing is that you can trade in a very short period like 60 seconds options. This kind of trading in the Forex world is usually called scalping, and it is not allowed by all Forex brokers, unfortunately.You can benefit yourself with a fast and immediate trading by using 24option as your broker. You should be able to see how easy and intuitive it is to open profitable positions by taking a look at the calendar of financial events.

The unemployment rate in America has raised more than you expected? Try open a bullish position on EUR/USD and make profit in the short-term periods (could be 60, 120 or 300 seconds). This is just an example of a fact that is publicly distributed in major economic calendars with predictions that can give us more insight about how the market will turn out to be in the future. And binary options are the best type of investment to take advantage of this information.

If we make trading, we would be able to see a small surge in the short term, but we do not know as long as it will last. If we do not content ourselves of the earned pipe, we may risk losing the advantage of forecasts that are taken from the economic calendars. With binary options, things are different. No matter whether the currency pair will rise or fall, the only thing that matters to us is the direction that the currency pair will take in a short time. In summary, we have evidence to believe that forex market is one of the richest of revenue opportunities, and that binary options are a useful complement to forex brokers based on CFDs to take advantage of all the opportunities. Click HERE for more information about Binary Options trading, press releases and brokers reviews.