As a binary options trader, I don’t care about cuts in the federal funds rate outside of where an announcement moves the price of the EUR/USD in the short term. But as someone who has to work for a living and is in need of a boost to their capital, a lowered rate of interest … Continue reading Am I pleased with the EUR/USD?
The primary question I ask myself when looking at a binary options contract for foreign exchange is, “Why would anyone buy euros using US dollars?” I had that question answered in part by the report on changes in U.S. consumer prices released half an hour ago by the U.S. Bureau of Labor Statistics. According to … Continue reading Binary options: NADEX contracts go dark at 8:30 am EDT. Inflation report looked most messy.
What has been weighing on the minds of binary options traders? Traders who purchased the NADEX binary options contract for the EUR/USD>1.1340 expiring at 11pm last night won their bet. The contract closed at 1.13761. The idea that the European Central Bank will cut its interbank rates tomorrow likely influenced traders’ outlook on the trajectory … Continue reading Binary options: What weighed on trader minds last night; first glance at Global South FX rates.
As of 6:12 pm EST, the NADEX offered the following binary options contracts for the EUR/USD expiring this Friday (23 May 2025) at 3 pm: Contract closing above 1.1225. Buy at $4.10 Contract closing above 1.1175. Buy at $5.00 Contract closing above 1.1125. Buy at $7.70 Contract closing above 1.1075. Buy at $9.10 Contract closing … Continue reading So far, a 98% chance the EUR/USD will close above 1.1025 this Friday
My back of the napkin forward rate calculation of EUR/USD=1.1210 on Friday. The NADEX is pricing the probability of EUR/USD exceeding 1.1225 at $4.10. The probability of EUR/USD exceeding 1.1175 is priced at $7.20. At 9:36 am, Reuters priced the EUR/USD at 1.1210, an increase of 35 pips from yesterday’s 4:15 pm read of 1.1175. … Continue reading The Interbank Markets: EUR/USD hovers around 1.1210 as of 9:36 am.
The data as of 11:32 EST … Investing.com has calculated a forward rate contract price for EUR/USD on 16 May 2025 at 1.1205. That compares with my back of the napkin forward rate calculation of EUR/USD=1.1210 on Friday. The NADEX is pricing the probability of EUR/USD exceeding 1.1225 at $4.50. At 11:00 am, Reuters priced … Continue reading The Interbank Markets: Will ECB seek other sources of dollar funding?
Lawyers Write the Bets. Bankers Sell the Bets. 