Binary options trading or gambling. Do you Trade or Gamble

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
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  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

Binary Options Trading or Gambling

Nowadays, binary options brokers are popular due to their short investment offers and promises of high profit margin. These marketing tools attract types of people that are playing poker online, gambling at casinos or betting on sports. But binary options leave an impression of offering more than just a bet in hope for profit, they are perceived as real investing tools.

So What are Binary Options?

These options can be bought on different assets and more or less look like the real investment. People are severely generating from these “all or nothing options” with opportunities to earn between 60% and 450% per one trade with binary options. Most of the time, betting has two options it is either win or lose. Binary option market’s gain or lose depend on asset lasting in one of two possible situations. Also, in case ending price is the same as starting price investor is going to get his money back. Some traders are encouraged due to this all or none results and take risk by predicting trade scenarios. That is why in some ways, binary options and gambling are always associated in the minds of potential customers.The distinguishing factor between gambling and investing in case of binary options is the bet size. As gambling entirely depends on the luck or chance, while binary options involve analysis and market predictions in betting.

The value of these depends upon the financial assets for which is dispensed, there are many ways through which you can invest in binary option based on market analysis and complete research on the concerned assets. In this way, one can have substantial data to decide whether the particular binary option provide revenue or not thus making it different from betting or gambling. Betting deal the capability to enter into a bet without predicting the outcome of the event whereas binary option allow the investor to conduct proper research and analysis about the strength and weakness of the underlying asset and then allow to authorise control over its future outcome.

On the other hand the trouble with this digital option is that they turn their percentage rate so quickly that even the expert traders become unpredictable about the mechanism of its market. So you just have to mount an instant guess and a prolong research for this kind of prompt trading. Another shortcoming provides longer term contract with broker certainly of one year which means that you will not be able to buy or sell your shares as the market fluctuates.

Is Trading Binary Options Gambling?

It must be an agreed fact that binary options involves high risk and high return on financial instruments. But it is similar to other trading options such as future trading or vanilla option trading and thus should consider as a part trading investment. So, short answer to are binary options like gambling – yes, but they are not gambling!

Although these websites are making huge businesses, and by searching through Google you would get around 900k hits with promotions that procure maximum profit in an hour, binary options are still more gambling than trading. However, even gambling can be done professionally. Go only for trusted binary options brokers!

Is Binary Options Gambling?

By Markus Silvester – July 28, 2020 4:37 am

Binary options are not gambling simply because there are market patterns and trading strategies one can exploit in order to make a structured approach to trading. These are called chart patterns and are used all around the globe, not only by binary options traders and forex traders but also by investment banks’ employees who run the trading desks. Also binary trading can use insights of fundamental analysis too. Gamblers on the other hand, rely primarily on the luck.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

Chart analysis is a legitimate tool to analyse the market and predict future movements in prices. This does not mean that there is no risk and that any simple strategy will do. There is a lot of work each trader needs to do before she can become a true master of the market. On the other hand, gambling involves luck.

  • In casino games, players are dependent on the system settings
  • In sports betting, players depend on many variables that determine the outcome of the match. Also, not all matches bring best returns, while higher grossing matches also carry more uncertainty.
  • Poker is a game of skill and players rely on a different set of individual and non-structured guidelines they themselves came up with. Poker has in many ways a lot of parallels to trading & markets.

Criteria are not clearly objective.

3 most popular ways to gamble are

    • Casino Fixed Odds Games (such as roulette)
    • Sports Betting (such as betting on an NFL team)
    • Poker (such as Texas Hold’em)

Casino Games

Casino games are nothing like trading binary options. Taking positions in the market vs betting on a roulette is not the same. In casino games, you get a return based on the probability of an event and it is always at a disadvantage to the player/trader. The house has the edge and the house always win in the end.

Sports Betting

Some traders might consider binary options to be very similar to sports betting, but they would be wrong. In sports betting, bettors are usually placing a bet on the final outcome of a game that lasts let’s say – 90 minutes. In binary options trading, traders are placing a real trade on the outcome of price movement after the options time has expired. But that is where all similarities end.

Sports betting is still just betting, while from a legal point of view, binary options are considered to be a financial instrument. They are regulated in a different way and cannot be compared. Betting and binary options are not the same thing and cannot be seen as such.

Binary options, as all types of financial trading, have some risks attached, and traders have to be aware of them. Betting, also involves risks, but as a fairly old phenomenon, it is more familiar to the traders than binary options trading.

All readers who want to experience binary options trading should be cautious, get proper education and trade with regulated brokers.

Estimate the Future

Nobody can predict the future. We can all speculate and try to predict it based on knowledge, feel, and experience, but you can never know all the variables. The reason why binary options are more interesting and profitable than sports betting is that you are betting against the market. You can find a nice market and gain an edge. Winning punters get banned from betting at bookmakers or limited to bet very small amounts as the bookmakers way of saying “Go away! We do not want your action”.

In binary options you are not typically betting against ‘the house – it depends on the liquidity. In many cases, broker will step in and take the other side. The brokers are simply buying and selling your positions by trading with others. If two people place a bet, one bet call and one bet put, the broker has no risk. For you to take a negative position on the Apple Inc shares, somebody needs to be willing to take the opposite position. If the broker is not willing to take a too high exposure on a position, they can go and buy the opposite position in the market which means they will profit with a smaller margin but also take very little risk.

Poker

Poker is by most poker players considered to be a skill game. On the contrary, most governments label it as gambling. Poker and binary options have several similarities. A skilled poker player has an edge vs. a newcomer to the game just like a skilled trader has an advantage over a random person on the street. Short term, the inexperienced can be just as profitable as the skilled trader/player and in some cases even more profitable. It is hard to argue that becoming an experienced trader and obtaining knowledge about different strategies while possessing a general understanding of the game/market will not have a positive impact on your ROI. Short term, luck does not make one resilient in the market long term.

Online Binary Options Trading Platforms and Poker Rooms

In poker and binary options trading, you do not necessarily play against the house. On a small scale you do; on a large scale you do not in binary options trading. The ‘house’ takes a small fee of your trades. The brokers naturally need to pay its staff salaries, marketing is costly and the online binary options brokers are being scrutinized by governed financial institutions securing the company is following the laws and regulations. We highly recommend that you only deposit with brokers that you find listed on our site. This will secure safe payouts and should you face any difficulties we can assist you.

Analyzing Patterns

Poker involves a high degree of analyzing peoples´ betting patterns when doing an opponent check, bet, raise or fold in certain situations. When you start picking up a pattern, you gain a financial edge and stand to increase your profit rate. Keep in mind you will always make mistakes regardless how savvy you become. Another important factor is that in poker, as well in the stock market, people can get distracted by their emotions. They hang on to a hand that looked good 5 minutes ago or keep shares because they have a personal relation to the company beyond pure and simple profit making. On the contrary, one might possess knowledge or have a secret strategy hence buying when then the most obvious move would be selling and cut the losses. You never know for sure. That is the beauty!

Binary Options Trading

Binary options trading can be learnt if one takes enough time to learn all about technical and fundamental analysis. Traders need to know basic chart patterns and indicator tools so they can start gaining experience in the market. We always recommend using the demo account to test one’s abilities before investing real money and trading. This way traders can see at which level they are and how much more they have to improve to become truly successful traders.

Is binary options trading gambling?

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It is more about whether you are gambling with binary options.

If your decisions are educated and your strategy has a positive expectancy then you are not gambling.

If you make bets for the thrive of the game or the hope of getting rich quick then you are gambling.

Seasoned poker players are not gambling. Card-counters are not gambling. On the other hand, many “investors” are gambling with “safe” stocks.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

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