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Is it possible to access exchange traded binary options in Australia?

Discussion in 'Derivatives' started by sasch, Jan 20, 2017.

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  1. sasch

    sasch

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    Hi all,

    I have been reading an interesting book on the subject of binary options (Wiley Trading Series). However the strategies mentioned, apply to exchange traded binary options, as opposed to over-the-counter binary options which seem to be the go here in AU.

    OTC binary options would seem to be a nightmare based on this type of instrument (lack of transparency, order delays, etc.).

    Is there any feasible way to access the exchange traded type here?

    A quick bit of research show that IG UK offer the option (no pun intended), however, not sure if this is accessible to local market users?

    If anyone can elaborate on this subject, it would be greatly appreciated.
     
  2. skyQuake

    skyQuake

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    Short answer: Its all OTC - you better trust your counterparty a lot!
    Long answer: CBOE has Binary Oppies on the S&P500, and VIX Index. Another lit exchange has them on individual stocks called Finish Up or Finish Down options.
    Nadex (owned by IG) are also in the US. Everything else is OTC, including IG UK.
    IG Markets operates here in Aus mainly as a CFD provider. They've been around for a while rather than being purpose made to scam people on opaque OTC derivatives
     
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  3. sasch

    sasch

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    Thanks skyQuake.

    I will check these out.

    It looks like something to have a flutter on rather than commit serious capital.
     
  4. mjim

    mjim

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    just would like to add one observation to skyQuake's response, Although it is true that Nadex is CFTC regulated and has the word "Exchange" in it's name but is it a true exchange? or a OTC with a namesake "exchange" when I asked who is the "market maker" behind it long time ago the company name I was told was parent company of Nadex and IG! so not 100% sure if there is NO conflict of interest! also a question for skyQuake" 1) on CBOE do the Binary options have any volume and what is the symbol ! also 2) Could you please mention the Another lit exchange with those Finish Up or Finish Down options
     
  5. Virge666

    Virge666

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    Dont understand why you would use Binary options instead of normal ETO.

    The big advantage of options is Theta or time decay, otherwise you may as well just use a CFD or a future. If you are long, be long, if you are short, be short and have a much tighter spread on both sides.

    am i missing something ?
     
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