A Mind Blowing Epiphany in Day Trading Binary Options
Day Trading Binary Options with Bonus Cash Is Mind Blowing
Lord knows I harp about trading binary options but I just had a really mind blowing epiphany about my sponsor broker EZTrader. Perhaps you my readers have already figured this out but it is only just fully coming to light inside my brain. Are you ready for it? Here it is:
Bonus Cash ROCKS!
That sounds totally obvious however what you may or may not realize is the awesome scope of this awesomeness. If you follow this blog at all you’ve likely already read the “binary hedge with call and put trades” post from September – but did you really fully understand the implications of that trading position / strategy when used at EZTrader, StartOptions or Binarix?
What’s Important to Remember Is That If You Are Not Taking Advantage of the Maximum % Bonus Cash You Are Missing Out on FREE EASY MONEY!
The Math Works Out Very Much in YOUR Favor
Did you work through the example I put together in September? Did it make sense to you? Good. Now if you’ll recall my post at that time the potential outcomes of that position were either 80%-95% return of capital or 60-75% profit over and above capital, all depending on the initial terms of the contract (our binary option trade example was 95% return of capital, or 75% profit). Not bad for a so called “all or nothing” trade, right?
Wait… It’s Actually Better Than It Looks
The headline is true, the trade outcome is actually better than it looks – at least it is right now. The reason being is the same reason I tout EZTrader in the first place: the flippin’ bonus cash. Hear me out:
Right now on EZTrader you can deposit new funds into your account and receive anywhere from 20% to 45% bonus cash on your deposit. Let’s presume you took the lowball route and got 20% bonus cash on a $500 deposit – so $100 bonus cash. How does that change your payouts/ROI on your $400 position (remember it was made with 2 $200 contracts) created in the binary hedge trade?
All Outcomes Result in Positive ROI!
When the bonus cash is taken into account ALL YOUR OUTCOMES RESULT IN PROFITABLE POSITIONS. Check out the new math (even better than the old math):
Previously we had bought 2 $200 positions and had outcomes of either $380 returned (a loss of 5%), or a profit (over and above $400 capital returned) of $300 (a gain of 75%). However in our example we did not take into account the benefit of the bonus cash – which effectively reduces the cost of our initial investment.
Provided we had available 20% bonus cash then our initial investment, instead of two positions costing $200 each, now costs $320 ($160 each). The two $200 trades are each made up of $160 investor capital and $40 bonus cash. When the initial trades are executed, the trader’s initial at risk capital is only $320!
What Then Are the Payouts for Trading Binary Options This Way?
Glad you asked. Since we invested only $320 of our own capital and received in return either $380 (in the case of one option being out of the money) or $750 (in the case that both binary options finished in the money) then we either made 18.75% profit on our out of the money position, or we made 118% on our in the money binary option trading position.
When You Trade Binary Options with Bonus Cash You Are Making Money Using Your Broker’s Money! What Other Industry Gives Money Away Like That? NOBODY!
Isn’t That Insane?
When bonus cash is taken into account and applied to the binary hedge with a put and call position you can’t flippin lose!
While there is no guarantee you’ll be able to create an effective call and put hedge position every time – when you do (and you have received bonus cash) you’ve essentially made free money.
That, baby, is arbitrage. Go get ‘em tiger.
PS. Juuuust a thought but you may want to think about signing up for a free subscription to this blog to receive updates like this post via email. Juuuust a thought.
Hi, I am an invester with eztrader, I am also an affiliate. I am having nothing but problems with them. I initiated a withdrawal on Feb.3 and still have not gotten it!!! All I got was the amount I deposited from my Credit Card which was $146, they still owe me $429, I have been contacting them every single day via live chat and email and they always have some lame excuse. Do you have any suggestions on how I can get my money from eztrader? I am at my wits end here. It is cruel and unfair. Thank you.
I have had no problems whatsoever with payments from EZtrader. You can contact them directly from their website or use their online chat feature to online chat directly with a representative. It does sound like you had some nice success tho’!
While I have no idea the specifics of your situation, the terms of service at EZTrader specifically spell out the hows and whens of funds availability and any other restrictions.
I urge you to visit EZTrader and use the online chat / customer service feature to resolve your issue. I have no direct access to your account there or anywhere else.
I hope you are able to successfully resolve your issue.
I should add – if your monies owed are related to your affiliate account, that is handled by a third party – not EZtrader directly. Contact the affiliate program through the third party.
I just started using EZTrader this week and so far no problem but the payment stories scare me. Does anybidy have any positive payment scenarios? How about you Steve, do you use EZTrader and if so have you been successful?
I use a variety of brokers (because no one carries everything and they’re all different) but I will tell you this. The FUNDS availability statement for EZTrader is fairly restrictive relative to what most traders are used to. Given that all of these guys offer bonus cash, they have to do that because others people would just make a deposit, snag the bonus cash, and bail.
READ THE TERMS OF SERVICE. The restrictions about withdrawals are spelled out pretty well at EZTrader, other sites do a little less clear job of explaining. It seems a little onerus, but when was the last time your regular broker ponied up 40+% of bonus cash on your $2500 deposit or $4000 deposit? To get funds available, you have to trade. I make numerous suggestions on here as to how to binary hedge effectively to avoid complete wipe outs and give yourself a good chance of walking away with at least a little of the binary options bonus cash – if not direct trading profits.
I KNOW some of you are trading profitably because I can see some of the results on the back end. Watch the videos. Read the strategies. Understand the restrictions and you should come out with your sanity intact and a few bucks in your pocket. Hang in there.
Thanks for the detailed explanation Steve – much appreciated. You seem to be experienced and well-informed on Binary Options, so is there one broker that you would personally recommend? Or is there a favorite broker that you have?
By the way, thanks for the binary hedge tips.
Thanks for the kind words. Be sure to grab the worksheets (search for “excel”) on here and you should be able to track them down. They aren’t world changers – just conceptually helpful.
As for brokers, they are fairly similar. Binarix and EZTrader seem to offer the biggest entry bonus cash (makes it easier to get yourself going) – but they offer obviously only selected securities. AnyOption offers commodities and far-out Foreign indexes, but no entry bonus cash (although they SAY they offer bonuses to high volume traders – guess I haven’t qualified yet…). Tradesmarter (to my knowledge) is the only one that offers platinum.
Personally my expertise is in tech stocks and US domestic stocks… Binarix and EZTrader cover those. I also have significant expertise in Oil – only AnyOption covers oil trading, copper, gold, silver, etc.
All things equal – go with the bonus cash… but if you specialize in a market (and specialization is where the big money is made), you need to use whichever broker trades your best securities. Clear as mud?
Clearer than mud! Hopefully if I hit a decent amount, I will let you know how long it takes for my payment to be deposited into my account.
I checked out the excel sheet and it was useful. I actualy used your references earlier and created a sheet for myself just so that I won’t forget the google examples you created. I am very proficient in excel so if you have any other examples please post them!
I had one more question for you Steve: how do you personally go about claiming your income generated (or losses) from Binary Options on your income tax return? I called the revenue office myself and found out that I have to keep track of my investments myself since these brokers do not issue receipts etc..I just think that if I were to accumulate a year’s worth of trades, the calculations will leave room for error. If you have an easier way, I would appreciate it.
Thanks Steve!
Yeah, if you want to make it easier on yourself copy/paste your account transactions log into excel and or quicken. Format it once correctly and then you’ll be able to get it into quicken and be done with it ’til tax time.
As for how I claim – I let the tax accountant do that – I think he puts it on Schedule D, short term gains/losses (max tax bracket but whatever).
I am prepping another binary options trade for worksheet and video… it’s just I only have so many hours in the day to get all the other stuff done… THEN I sit down to start writing… when I can stand it lol…
Best of luck Bart. I’ve read so much hype about binary options I just had to put something to paper to help people avoid getting fleeced. Screw up a binary options trade or trade without a plan and forgetaboutit! Your investment capital is toast! Always have a plan, always use the binary options for what they’re good for: making your trade an “either or” position. Either I get what I want with “A”, or my binary options payoff will be “B”.
Keep that in mind and every trade will result in some type of desired result.
Steve, your advice has been most useful. After only 1 week I have made a small profit. I will wait for another week to withdrawal some money just to save on some fees. Hopefully I do not encounter any problems. You are absolutely right: if you don’t have some sort of plan, you can quickly lose all your money.
I really look forward to your next worksheet and video!
Your input has been most appreciated Steve.
Thanks
Hi Steve,
Just wondering if you would know why a fee of 4.66$ would be added to my original deposit of 100$ when I opened an account on EZTrader? I know it is not a big amount, but since they stated there are no fees, just want to make sure I know of all details in advance.
Thanks so much
Hi Bart-
Didn’t see this comment right away. While I know there aren’t any transactions costs related to binary options TRADING – money funds transfers between banks (either your checking account or credit card account) may be subject to interbank fees (wire fees, etc.) This may or MAY NOT be related to something EZTrader did or your bank did.
For an explanation you’ll really need to take it up with either the bank where you initiated the funds transfer OR EZTrader or both.
EZTrader definitely has specific fees for moving money out of your account – particularly by wire – but this is no different than any other brokerage.
Sorry to not be more specific than that.. I have no access to yours or anyone else’s accounts.
Please feel free to post/reply what you find out.