Binary Options

[David]

Following the financial collapse of '09, binary options became popular. This is because both the risk and reword are, unlike most investments, known variables before any money is committed.

Here is the Wiki so everyone understands what I'm talking about: http://en.wikipedia.org/wiki/Binary_option

These options are in regulatory limbo being an unregulated mess or respectable investment strategy depending on which country you're trading in making it prone to fraud for those investors who don't check the regulatory situation for the companies they trade with.

Does anyone have an opinion on this type of speculatory (Is that a word? :giggle investment?

 

[myp]

What do you mean by both the risk and reward are known? The two possible outcomes are known, but risk and probabilities still fall under risk models like with anything else.

Small quibb too- the financial crisis was 2008.

 

[David]

What do you mean by both the risk and reward are known? The two possible outcomes are known, but risk and probabilities still fall under risk models like with anything else.

Small quibb too- the financial crisis was 2008.

It started in '08. Wasn't exactly a quick event or we wouldn't only just now be recovering and it was '09 when this kind of trading started becoming mainstream.

 

[myp]

It started in '08. Wasn't exactly a quick event or we wouldn't only just now be recovering and it was '09 when this kind of trading started becoming mainstream.

I don't know how much reading you've done on the matter, but generally the big name writers and econ/finance communities at large pinpoint the financial crisis as starting in 2008- particularly with Lehman in September. Aside from that start date, most tend to refer to it as the collapse of '08, not '09. '09 saw the DJIA hit its low but that was just ramifications of what had happened in '08.