Binary Option Robot Review

One can model the value of a binary cash-or-nothing option, C, at strike K, as an infinitessimally tight spread, where is a vanilla European call: 22 23There are basically two types of binary brokers available on the market. The first ones are classical online trading brokers where traders will be betting against the broker itself. The second ones are binary option exchanges were traders will be trading against each other.On this page well discuss the second type of financial spread betting, which is binary options exchange trading and CBOE: Chicago Board Options Exchange brokers. Well reveal you the differences between these two binary investing types and the advantages of the two trading modes.Binary options exchange investing, or as its also called, CBOE financial betting (Chicago Board Options Exchange) is a form of financial investing where traders will be trading against each other rather than against a broker. Consider the following example to better understand this:Now, these traders will have the possibility to bet against each other. In order to do so, they will have to invest a certain amount of money on their bet. The trader that will make the accurate prediction will be rewarded with a prize that will be his bet amount plus his opponents bet amount minus a commission.In exchange financial spread betting the broker thats offering exchange services will charge a certain amount of commission from the bets that were placed by the traders. This is the way the trader is making money using the exchange financial investing model.In normal financial betting, traders will bet against the broker and not against each other. Every time a trader makes an accurate prediction, the money that will be paid out in the form of profits will come from the broker. Every time someone loses, the money will go to the broker.From a technical standpoint these is really no difference between the two trading types. Its completely irrelevant from traders perspective against whom they are trading at. In both situations, in case of an accurate prediction the trader will win, in case of an inaccurate prediction the trader will lose.However, many people believe that exchange investing is better because in these cases the broker does not have an active interest in traders losing. In exchange trading, its completely irrelevant for the broker which trader wins and which loses because the broker already cashed in the commission when traders have purchased a contract.In reality, it really makes no difference in case traders only register at legitimate binary options brokers. The fact that a broker is operating on a CBOE online investing model does not protect traders in case that broker is not a legitimate company.Its really about only trading at legal binary options brokers. This is the only condition traders should consider. If a broker is legal and is operating on a traditional financial spread betting model, then the services that broker offers are as safe as the services offered by an exchange binary options broker.Perhaps the only advantage of financial investing exchange trading is the fact that at such brokers traders will be able to see what the popular predictions are by other traders. This way, traders will have the possibility to choose what the majority chooses.However, this is also the greatest disadvantage of CBOE binary betting brokers. This is because, say, 80 of all traders decide to choose to predict that the value of an asset will go up then there will not be enough traders to bet against this prediction, meaning that the bets of a large number of traders that predicted that the value of the asset will go up will be cancelled.Online investing exchange trading only works if precisely 50 of all traders make one prediction and the other 50 makes the opposite prediction. In order to maintain this balance, financial betting exchanges usually provide only very difficult contracts in order to determine traders to reply more on luck than on skill.However, as explained in the paragraphs above, financial betting exchanges might be encouraged to offer difficult online investing contracts in order to determine traders to rely more on guessing rather than on skill. For this reason, we believe that traditional brokers are more advantageous than exchanges because they are free to offer very simple and easy to predict contracts.OptionsAdvice cannot be held liable for any damages incurred due to the usage of any information displayed on this website. The information and trading guides found on the webiste constitute the authors opinion only. Binary options involve high-risk and are not suitable for all investors. Binary options may not be legal in your jurisdiction. Its visitors responsibility to make sure binary options are legal in their jurisdiction before enganing in trading activity.Its been a while since Nadex became the first legally operatingbinary options exchange in the US. Ever sincethe CFTC took a tough regulatory stance against the binary options industry, seekingto make the market transparent and, most of all, real, with proper contracts transacted on exchanges, theres been a few additions to the market.The main difference between Nadex (North American Derivatives Exchange) and the plethora of unregulated offshore companies which are offering binary options trading, is that the trades on Nadex are executed on an exchange at a price thatthe client sets.The company is not taking the other side of the trade and is delivering the most transparent product available on the binary options market today. As an exchange, Nadex doesnt haveany interest in who the profitable party in a trade is, hence there is no conflict of interest between the client and the company.All binary options offered on the exchange are priced between 0 and 100 with the price indicating the likelihood of a particular event occurring or not. For example, if we have a EUR/USD daily option with an expiration value of 1.1920 (as seen in the screenshot), we have two prices: the bid and the offer.If the trader wantsthe price of the EUR/USD atexpiration to be above 1.1920, he/she can place a bid and set the price at which the trade should be executed.