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Old 09-28-2012, 04:53 AM
jayakbar334 jayakbar334 is offline
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Default Binary Option Trading - scam or not?

Hi everyone,

My name's Jay and for my third year dissertation I'm researching for a documentary on binary option trading. I heard about it by accident and don't know a single person that's ever done it.

I did manage to speak to one expert in America who said that although it is legitimate, it is a scam...

Does anyone have anything to add to that...? Does anyone here do it???
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Old 03-01-2013, 02:46 AM
MarketSell MarketSell is offline
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Default Re: Binary Option Trading - scam or not?

I know quite a bit about the industry. To call it an out-right scam is erroneous. Binary Options can be very risky but with some research, trading skills and a knowledge of how an asset or stock price moves, they can also pay well.

What you simply have to understand is that it is very similar to gambling. When you trade binary options, you don't actually 'trade' anything. You are basically betting against your binary options broker and if you win, you are paid out a predefined percentage that ranges anywhere from 61-85%. If you lose, they keep the money you placed on that 'trade'..... 100% of it. So it's not about being a scam as it is more about just another way to gamble and deciding if you like those types of odds.

I know people who treat it like black or red roulette and I know people with actual trading experience who do quite well with it just as a means of making a quick trade here and there.

Let me know if you have any other questions about it.
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Old 03-02-2013, 07:27 PM
smk smk is offline
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Default Re: Binary Option Trading - scam or not?

i traded binary options in the institutional markets many years ago and it was completely different from what you describe. can you explain the exact mechanism with an example. who is the counterparty, where are they traded?
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Old 03-02-2013, 07:34 PM
Fredy Atwater Fredy Atwater is offline
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Default Re: Binary Option Trading - scam or not?

Thank You for the education.

Fredy
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Old 03-02-2013, 08:01 PM
Fredy Atwater Fredy Atwater is offline
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Default Re: Binary Option Trading - scam or not?

Even Warren speculates with options trading and makes big money

Berkshire Profit Advances 49% on Buffett’s Derivatives

Source : Bloomberg
ReporterNoah Buhayar & Zachary Tracer
Date:Mar 1, 2013 6:37 PM ET


Berkshire Hathaway Inc. (BRK/A) said fourth- quarter profit rose 49 percent on gains tied to derivatives wagers made by billionaire Chairman and Chief Executive Officer Warren Buffett.

Net income rose to $4.55 billion, or $2,757 a share, from $3.05 billion, or $1,846, a year earlier, Omaha, Nebraska-based Berkshire said today in a statement. Gains on derivatives surged to $1.4 billion from $163 million.

Buffett, 82, uses index put options to speculate on long- term gains in stock-market indexes in the U.S., Europe and Japan. Those bets added $2 billion to profit in the fourth quarter before taxes as Japan’s Nikkei 225 (NKY) Stock Average rallied.
“The probability of Berkshire ever having to take a loss on these contracts is very low” because they won’t be settled for years, said David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business, who has taken groups of students to visit Buffett in Omaha.
Berkshire Class A shares gained 29 percent in the last year as Buffett struck deals to buy back stock and take ketchup maker HJ Heinz Co. (HNZ) private. That compares with the Standard & Poor’s 500 Index’s 10 percent advance.
The equity index contracts are tied to four stock indexes including the S&P 500, which fell 1 percent in the period, and the Nikkei 225, which gained 17 percent. Liabilities narrow when equity benchmarks rise, and the fluctuations are recorded each quarter in Berkshire’s income statement. Gains on credit-default contracts, in which Buffett bets on the ability of borrowers to repay debt, were $67 million.
Buffett’s Letter
“These derivatives have provided a more-than-satisfactory result, especially considering the fact that we were guaranteeing corporate credits -– mostly of the high-yield variety -– throughout the financial panic and subsequent recession,” Buffett wrote in his annual letter to shareholders.
Buffett built Berkshire over almost five decades through takeovers and stock picks into a firm valued at about $253 billion. Its more than 70 operating units haul freight, generate electricity, make building supplies and sell products from insurance to chocolate.
Book value, a measure of assets minus liabilities, rose to $114,214 a Class A share at the end of December from $111,718 three months earlier. Buffett’s stock picks and takeovers have helped boost the figure more than 5,000-fold since he took control of Berkshire in 1965.
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Old 11-21-2018, 04:49 AM
SunnyMay SunnyMay is offline
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Default Re: Binary Option Trading - scam or not?

Hello, that is quite interesting discussion. I wanted to say that there are a plenty of sources where you can find and read a lot of useful betting tips. I always read betfaq predictions and every my bet is successful. In my opinion, they are pretty exact. What do you think?
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Old 11-30-2018, 12:56 PM
Valz Miky Valz Miky is offline
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Posts: 194
Default Re: Binary Option Trading - scam or not?

I think if the broker is good then it’s fine but mostly people end up with wrong brokers. I prefer Forex more and that’s through FreshForex, who are servicing in the industry since last 1 decade. They are highly safe and secure, which allows me to work well and achieve right targets. While their features too are class apart, especially the Market Analysis section. It allows one to trade easily and confidently in any and every situation.

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