Broker Detective Blog

February 28, 2010

What are Binary Options Trading Software?

Filed under: Investing — admin @ 7:06 pm
assaf b asked:


is any one heard about binary option trading platform like www.onehouroption.com and www.anyoption.com/comb_939.html

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2 Responses to “What are Binary Options Trading Software?”

  1. enoriverbend Says:

    commercial Mortgage

    A binary option is one that either pays off a fixed amount or zero. They have been growing in popularity since the SEC approved listing cash-or-nothing options in 2008.

    For more info, Wikipedia has a nice writeup at:

    If you are a novice, I would stay far away; and stay even farther from any site advertising a ’system’.

  2. Ted Says:

    commercial Mortgage

    One operator makes money by paying out 70% profit if you are right and giving you a 15% refund if you are wrong. 15% refund means 85% loss. So assuming in the long term put and call buyers are equally divided, and each has an equal opportunity to be right, the operator makes (85% minus 70%) divided by 2 for 7.5% of every trade.

    Another operator makes money by paying out 75% profit if you are right and giving you a nothing if you are wrong. 0% refund means 100% loss. So assuming in the long term put and call buyers are equally divided, and each has an equal opportunity to be right, the operator makes (100% minus 75%) divided by 2 for 12.5% of every trade.

    The odds of winning and losing are about equal because short term movements are very close to random.

    The big money trend following traders are usually wrong but are profitable because they get the big moves right. With binaries, there are no big moves because everything is a fixed payout.

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