Bitcoin Binary Trading

[PenguinFire]

Does anyone here do binary trading?  My grandfather recently got into it investing tens of thousands across the board and I noticed he had two bids on bitcoin.  Is it profitable?  Any thoughts would be great. 

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[oblox]

Of course it can be profitable, if you're on the right side of the trade. It's a zero-sum game. You either win a flat percentage if your "bet" on price action is above or below the strike price or you lose 100%.

[chriswen]

Hmm I think binary options are quite fun.

Now for the math side the thing is that market makers are still developing models for probability models to price binary options.  It's not exactly a perfect science.  So using skill you can have an edge on the market maker or you can also make money by being lucky.

So there are people who are profitable because they get lucky.

I've recently been trading binary options at coinut.  I really like using the 30 minute options.  I've recently been quite successful (3000% gain) but I also think of it as machine testing the market maker.  Now it adjusts a bit and has to work on the market making.  Also there is a bit of a luck factor.

So what is coinut?  It's a Bitcoin binary and Vanilla options exchange.  This means unlike other sites there is not fixed odds.  The odds are based on what the market prices them.  I think the odds you can get is really good.

So how does the binary options work?  There's a 30 minute, 4 hour, 1 day, weekly and biweekly contract.  There's also different strikes.  You can choose to buy strikes in the money or out of the money.  Obviously you get a bigger payout for out of the money options.  So say the current price is $237, you can buy a binary whether the price will be above 236 in a day or 242, or 244.  That's another thing I like.  Usually sites only offer at the money options but these let you choose your strike price so you can get a better payout.

The payout on binary options contract is 0.01 for all of them.  And if you lose its 0 BTC.  But what's interesting is you can also sell these options before the expiry time to reduce your risk exposure, gaining profit just through scalping odds without exercising your contracts (waiting for settlement)

Yeah so out of the money odds are awesome.  If there is 5 minutes left on the 30 minute contract you can get 5x-8x odds for a $0.75 move.

Currently there's a 2x payout for a $0.17 move in 7 minutes and a 3x payout for a $0.42 move.

If you check other options sites like btcoracle.com you can see that there biggest payout is 2.03x

So if you want to check out the site you can click the link in my signature.

[EternalWingsofGod]

Does anyone here do binary trading?  My grandfather recently got into it investing tens of thousands across the board and I noticed he had two bids on bitcoin.  Is it profitable?  Any thoughts would be great. 

It does have a significant return if your on the right side of the trade
Dynamics etc. It's still a fairly volatile asset so picking a good spread bid ratio can result in ROI
Long term holding has been a loss since the price has been dropping but for an active trader it's possible to make a good sum from the movements.