Binary options trading for not beginners vs gambling

Binary options. Gambling or financial instrument? Binary options are nowadays widely recognized as one of the most accessible ways of getting introduced to financial markets. The pace of penetration in the retail segment has been truly overwhelming during the last 5-7 years, yet even though this type of instruments has undergone a noticeable shift of perception in both investors and market participants minds, we still see no finalized common opinion formed on the essence of that instrument. Let's try explaining and answering to ourselves what binaries actually are and that are their strong points. Industry emergence. Following Fx on the way to regulation. The high popularity came at an initial reputational cost for the new asset class. One of the reasons for binaries rapidly gaining popularity was the lack of regulatory framework and industry standards, which ensured a strategic advantage over forex, derivatives other more complex markets in the eyes of emerging start-up brokers. The effort-efficiency of launching a binary brokerage attracted a vast number of undercapitalized market participants diluting the image of the service, leading to the incorrect perception of binary options being more like gambling and a scam rather than trading. The sites Binary option brokers appeal to the same type of people who play poker online.

But they somehow have an aura of being more respectable because they represent themselves as offering a form of investing. Don't kid yourself. These are gambling sites, pure and simple. It's probably just a matter of time before regulators move in on them. Gordon Pape, "Don't Gamble on Binary Options" ( Forbes ), 27072010. The gambling parallel was, unfortunately, widely exploited in promotional campaigns run by market participants. Balancing on the edge of two confronting definitions (gambling vs. trading instrument) has raised numerous discussions within the trading and expert community, both sides having their supporters. Gradually this debate fostered a view, which I personally find most reasonable, that primarily questioned not the essence of binaries, but mostly the suitability of any asset class to a particular individual or method. Since one of the meanings of gamble is taking risky action in the hope of a desired result or staking something on a contingency, pretty much any financial instrument may be considered as an object of gambling if approached without proper prudence. Judging by this definition, a lot of what we do in daily life is gambling. Binary options are gambling much like other financial instruments, tangible or intangible.

"Are Binary Options a Form of Gambling?" ( FinanceMagnates ), 30072014. Indeed, opening an overleveraged Fx position with a micro-account, opening a leveraged CFD position without stop-loss on a stock the trader does not have a profound knowledge about, going into a derivative while not building a real hedge does not seem getting any further from gambling in the common perception of that concept. You may have grasped that the common trait of the last 3 examples is poor risk management. Let's be honest, any investment activity is gambling. Venture capitalists also gamble when they invest into start-ups, there is no guarantee that the company will survive let alone bloom. "Are Binary Options a Form of Gambling?" ( FinanceMagnates ), 30072014. Poor risk management usually originates either from the intended will to speculate with high risk or from the unsuitability of the instrument to the particular client, which in its turn comes from the lack of regulation in client assessment, informing and general education. And here again we return to the initial problem with binaries - the lack of regulation. Fortunately, we already are seeing a retraction of this tendency towards a closer regulatory oversight, renowned financial market participants embracing the binary offer in their product range and traders exploiting the original strong qualities of binary contacts in their trading strategies. Cyprus was the first watchdog to officially start regulation of binary option brokers in 2012, while many of other EU jurisdictions kept viewing binaries as "game of chance" and directed requestors towards their local gambling regulatory bodies.

Things started changing fast in 2015. The year started with a landmark decision by Rotterdam court ( Source ) on the OptieClub case, where the Netherlands financial regulatory body (AMF) was forced to issue the first licence to a binary options broker. The watchdog had rejected the request earlier despite falling into the financial markets product definition under MiFID regulations and directed the broker to the Dutch Gambling commission. Similar news are coming from the UK where Her Majesty's Treasury issued a consultation paper considering regulating binary options as financial products. The UK Government is consulting on proposals to treat binary options as a financial rather than a gambling product. This would mean binary options would be regulated by us, the , in line with practice across most of the EU, and no longer be regulated by the Gambling Commission. Both the Dutch court decision and UK initiative are indications on an impending paradigm shift that might open the gates for legitimisation of binary brokers seeking to get solid regulation in the EU market. Essentially, binary options industry is following the same path the Forex markets started 15 years ago: starting as a newly emerging speculative market dominated by non-regulated participants, low client confidence and ambiguous image retail, Fx turned into a well-established industry, overseen by financial authorities in virtually all developed countries it is now offered in the product range of numerous commercial banks. Binaries are now making the same journey towards regulation and transparency and seem to be doing it faster than Forex did in the past. At Dukascopy we have been feeling the shift of attitude to binary options especially strongly as our decision to enter the binary market 2 years ago was being taken amidst reported reservations regarding the suitability of this service to a well-established and reputable broker. On the contrary, we saw a clear competitive advantage in the fact that binary trading will be offered by a Swiss-regulated bank via proprietary platforms. We believed that this should contribute to the diversification of the market, reinforce traders' security and offer an alternative to standard solutions thus ultimately improving client confidence to the entire market segment. Binaries as simple, yet secure and useful financial instrument. Simplicity, straightforwardness and transparency are considered to be the key inherent traits of binaries.

Absence of commissions, binary result (i. e. there exists only 2 outcomes), which implies possibility of capitalizing with maximum payout on minimal market movements contract amounts as low as 1 USD and available short timeframes, sometimes less than a minute. Despite the doubts of being proclaimed speculative, binary options should be advocated as possessing all the characteristics of a financial instrument that can be used to realize investment goals. Binaries have particular attraction for investors whose strategies involve trading on economic news. News trading is a sophisticated investment activity that at minimum implies the following: Knowing when news are out and in what countries Being capable to carry out technical and fundamental analysis to assess the news impact Picking a currency pairpairs that are expected to be impacted Forecasting the needed duration of an option (e. g. 5 minutes or an hour) to avoid the interim noise volatility before and after the news is out Correctly and carefully placing a pending order and describing it. Noise volatility (volatility spikes) is a real problem for news traders that can be successfully dealt with using binaries. Here is a real-life example that demonstrates the impact of volatility: Example 1 : ECB Minimum Bid Rate (act. 0.50%, exp. 0.50%, prev. 0.75%) Date and Time: 02052013 11:45 GMT. ECB has reduced the base interest rate by 0.25%, which elicited a downward pressure on the EURUSD. However, a trader who correctly interpreted the news might come across a noise volatility that could have resulted in interim losses on a spot position. Binary option would be more preferable in this situation. Example 2: ECB Minimum Bid Rate (act. 0.50%, exp.

0.50%, prev. 0.75%) Date and Time: 02052013 11:45 GMT. Unemployment claims came out significantly lower than expected. However, the investor who correctly predicted it and forecast downward movement of USDJPY would face an unpleasant surprise when the pair hiked by 50+ pips. After the unexpected spike the pair abated as expected. An investor with short spot FX position could have been closed on margin cut or voluntarily closed the losing position. Binary option would again help the trader pass over the spike and gain on the correct forecast. Binaries also feature a set of important qualities related to tradingexecution risks management. First is the independence of market depth, which means technical absence of slippages. Second, predefined maximum profit and, most importantly, maximum loss make it impossible to lose more than the amount of the contract. The latter also implies impossibility of driving the account into negative equity even under market force majeure conditions like those observed during the CHF soar on January, 15th 2015 after the Swiss National Bank's surprise decision to abandon the EURCHF floor. With all of the above features binary options are making another major step in turning markets more accessible to a retail trader, comparable to forex instruments going into electronic trading on retail platforms 2 decades ago. Adding a unique touch to binaries in Dukascopy.

Being a banking group with an considerable IT development expertise Dukascopy undertook the development of an in-house binary service and trading platforms (Web, iOS and Android), which ensured considerable flexibility and freedom compared to the common approach of going into a white-label with one of the major platform vendors, an approach that had become standard at that time. Seeing binaries as a new area for us, we went for a conservative start with offering the classic yet most widespread UpDown binaries on currency pairs. Our flexibility allowed us offering features that were and remain unique in the market even for that basic binary options type: fixed payouts with a default level of 90% , which still remains among the highest in the market, custom-set option durations of 1-60 minutes with 1 min discretion. To achieve total transparency of the price feed we are using the SWFX (Swiss Forex Marketplace) flux, i. e. the same quote source as Dukascopy's FxCFD trading platforms. Another valuable feature highly appreciated by technical traders are the fully-functional charts with over 180 indicators and drawing objects available in the Web Binary platform. After the service was successfully launched for the clients of Dukascopy Group, binaries became available as a separate module in the Dukascopy White-Label partnership program. This year we extended the instruments range with Daily Stock Options giving access to a session trading of over 1500 stocks from all over the world and Pair binaries on stockindex combinations. Unlike the conventional approach of offering a short fixed set of pair combinations, our traders can build their own compositions. Many updates and new features are now in the pipeline. This includes further integration of our products, allowing automatic creation of new trading subaccounts and platform improvements. To harmonize the offerings available to FxCFD clients and binary traders we are now working on launching an equity bonus program for binary accounts.

Finally, new binary instrument types, including the Touch binaries and their variations, are on the way. Again, as with UpDown options, we intend to continue re-thinking conventional instruments while striving to add a unique element to our service. All the above mentioned unique features of our binary options are fully available to the retail clients thanks to Dukascopy Europe. Binary options accounts with Dukascopy Europe are available for contract sizes from 1 USD and an initial deposit of 100 USD. I invite you to get your own experience of binary trading with us at dukascopy. eu. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of NASDAQ, Inc. Binary Options Trading vs. Casino Gambling. Binary option trading is a type of financial trading module where there is a high payout percentage for the trades that do well. Casino gambling on the other hand is a form of sport in which an individual gets to lay bets on the occurrence of an event. Typically, in gambling, the result of the event is unknown and depends on a good amount of luck.

The major difference between gambling and binary option trading is that while binary option trading relies on sound business statistics and modules, gambling relies more on luck and probability. The differences and the similarities. Binary options rely on online trading techniques and an initial investment with which you can trade. It is a much simpler form of trading compared to the real trading and yet it still makes some money for the participants, both brokers and traders. In addition, you can get very high returns in a very short time. Casino gambling on the other hand, refers to a game of sorts in which various individuals place bets on the probability of an event occurring. For instance, in a racing match, patrons may be given the option of earning some money by placing bets on the probable winner. In addition, the probability of different people winning is normally ranked and different returns assigned to each. Another major difference is the amount of risk that an individual undertakes in the two circumstances. In casino gambling, the risk is undefined and open to control by factors outside the control of the player. However, in binary option trading the trader and the broker are usually in control of a larger number of the risk factors, which can be analyzed based on sound business models.

This allows the trader to control the varieties of outcomes that are possible during a trade. On the flip side, it is important to note that gambling does not only rely on luck, but also smart trading techniques, which may influence the outcome. Gambling, especially in casinos is normally designed to keep the patrons entertained and pull them in again and again. Usually, casinos ensure that patrons keep winning in various amounts to keep them hooked. On the other hand, binary option trading operates in a more formal manner, in spite of the result of the market activity. This means that the basis on which trade is performed in these two scenarios is very different. In addition, binary option trading usually offers refunds to the traders in case of out of money outcome. In essence, this provides a sort of security to the traders and the brokers in the binary trading market. This is an option that is not usually exercised by casinos in gambling. The losers usually lose out on their investment while the winners tend to take home more than they invested. Both casino gambling and binary option trading rely on specific time deadlines however, gambling can go on for a more unscheduled period when compared to the binary option trading. As such, you can keep playing over and over until such a time that you are exhausted or the casino is shut down. IQ Option is one of the most reliable and secure brokers and a safe haven for all traders. This broker is regulated by and offers options for as low as $1, plenty of stock options and a great trading platform!

Binary options trading for not beginners vs gambling Is Binary Options Trading Like Gambling? This question has been repeated so many times that we thought it deserved a special section. A lot of people like to think that Binary Options is like gambling because you are basically investing your money on something that you simply cannot tell with a respectable degree of confidence. Since you are trying to predict whether the cost of an asset will appreciate or depreciate within a specific time period, you can either be right or wrong, regardless of what you may have learnt. Let’s take a look at whether this assumption is true or not. Gambling is essentially an investment into an activity in the “hopes” of winning something of a higher value. Gambling is extremely popular the world over places like Las Vegas are frequented by millions every year who try to find that lucky break which will turn their thousands into hundreds or thousands or even millions. Of course such an outcome is tempting! All you do is show up, place a bet and chances are you will walk away with enough money to make the rest of your life hassle free and comfortable. Popular forms of gambling include lottery, horse race, casino games like blackjack, roulette, bingo.

There are even wagers which are placed on the outcomes of certain sports such as cricket and football, these bets include predictions such as who will win the toss, how much will the team score after a particular time period and whether a particular team will win or not. The keyword in all the activities above is “hope”. The decision to place a wager is purely an emotional one and there is virtually no way that the gambler can even hope to get a clue regarding whether the eventual outcome will be in his or her favor. Gamblers often place large sums of money saying things like – “I just know it!” or “this is my lucky day”, hardly a well thought out decision. Gambling by its very nature is extremely risky and the odds from the get go are always stacked against you. Simply put, you are gambling if… You have absolutely no way of knowing how the activity will turn out. You are making financial decisions purely on an emotional level. You did not bother to study the game you are investing in. You believe that chance, luck or fate favors you. Gambling vs. Investing in Binary Options. So does Binary Options fit the above description? Well for starters there is no way you can state with a hundred percent confidence that the outcome of the trade will go as you saw it, but the same could be said about anything else in life, ALL activities have some degree of risk attached with them and there is no way you can ever predict with total certainty that your plans will work out your way. So there is no doubt an element risk that you might lose the amount you invested to purchase the trade.

However, most people do not realize that part of Binary Options trading involves rigorous study of market trends, chart analysis and how assets tend to move from time to time. It also requires an understanding of binary options pricing. This is why those who bother to understand the market in general are the most successful at it. Therein lies the difference between gambling and investing, while gamblers are emotional people, willing to lose money against a hopeful outcome, traders are intelligent analytical people who have rigid money management strategies and place trades in carefully selected scenarios which offer the highest chance of a positive return. If Binary Options could indeed be classed as gambling then all traders in stock markets are gamblers and surprisingly, many of them are some of the richest people on the planet. Unlike gambling, in Binary Options you CAN predict with a high degree of confidence how an asset will move! While this does not mean that all the trades you place will win, there are ways you can turn most of your investments into winning ones. Mitigating Risk in Binary Options. Risk in Binary Options can be brought down systematically by a careful use of charts, market analysis and strategies. With the aid of charts you can understand how the price of an underlying asset is moving so that you can make an informed decision. When you have the history of how the asset has been behaving through a set period of time, you can at least gain an idea as to how it may behave in the next few minutes or hours. Next, you can use strategies to reduce the risk as well. For instance, you could use a method called “Spreading” where you can duplicate a trade across a number of different binary option platforms. Since each of the five trades will be placed a few seconds to a few minutes apart from each other, it instantly increases your chances of scoring a winning trade on at least a couple of them. On an average you can hope to win 70% to 80% of all the trades that you will place when you make a use of the signals which you will receive from Option Bot 2 if you use spreading.

Avoid the Winning Streak Pitfall. One of the biggest errors which both seasoned traders and gamblers commit is getting carried away by winning streaks. A smart investor knows when to call it quits and move away, under no circumstance should you invest more money than you can afford to lose and the best way you can hope to win at Binary Options is by trading slowly and steadily rather than hunting for those special days. This can be a good initial method as it trains the trader to keep to dedicated limits and to reduce account churn. Some traders are of the view that trading profits are a function of how many trades are placed in a day. However, trading for the sake of trading can dilute your returns unfortunately. Managed Binary Trades is developed by a team of financial market experts with more than 10 years of experience in forex, stocks and binary options. Managed Binary Trades is developed specially for beginners and Novice traders as well as expert traders looking to make the most from investing in the various financial markets. Trading Tools. © Copyright 2017 Managed Binary Trades. All rights reserved. Is binary options a new form of gambling? Binary option has supposedly taken Forex and stock trading to a completely new level.

With new and improved technologies, brokers are providing platforms that claim to make trading super fun, quick, and effective. If binary option is an actual trading instrument and is not gambling then it has successfully taken out all the boring elements from normal trading and have replaced it with a fast and interesting platform. Is binary option Gambling? There are two sides to this story. If you ask this question to a broker, then most of them say no i. e. they will claim that it is not gambling. On the other hand, there are several clear indications that suggest binary options is gambling. Just for the record, it is my personal opinion too i. e. binary trading is 100% gambling. Majority of brokers will tell you that options is not gambling, and they will defend their position by giving different reasons. An account manager once told me during a phone conversation that their website is connected to some network by which their site get real-time trading data from the markets, and when a customer wins a trade, a third party pays the profit. “His company wants its customers to win as many trades as possible on each trade customers execute, our company receives a small commission by a third party,” he added . He further explained that when a trade ends in a draw then they don’t get any commission they receive commission only when a trader either wins or loses a trade.

Binary option brokers lie! The account manager continued the story and said that they want traders to win and make money so that the company can continuously get commissions. “If a customer loses all his money and stops trading, we stop getting commissions,” he said. If what the account manager said is true then all of this could make sense. Traders win trades and make profit while the broker gets commissions it seems to be a workable system that actually does exists in ECN Forex Trading. Another thing they brag about is being a licensed entity. Most brokers reside in Cyprus and they get their trading license from Cyprus Securities and Exchange Commission . They ask traders to trust them blindly because they are regularized by . Binary brokers are trying really hard to give the impression that what they do is same as Forex Trading and I must say they are doing a great job, however there are several unanswered questions like, who exactly is this third party? Moreover, if majority of traders make money then how is it surviving? How does it make money for itself?

Broker want to make, not lose money. Companies do business to make money for themselves they don’t do it to make other people rich. If you search on Google, you will find tons of withdrawal related complaints against majority of brokers. Traders who are able to make profit are not getting their money from brokers they make up numerous excuses for not paying. Why do they have such a hard time paying profits to the traders? You will find countless complaints against famous brokers who spend thousands of dollars every day on advertisements. They will make up all kinds of lies to hide the truth. Nevertheless, there is hope. There are few honest companies in this otherwise awful business, one of which is MarketsWorld. This broker is famous for paying profits without any issues. Unlike other dishonest ones, they operate under the law. MarketsWorld or MW is the only financial betting site that operates in Isle of Man, UK. Gambling Supervision Commission GSC regulates this company. Gambling Commissions do not regulate currency-trading companies, so if binary option is not Gambling then why does GSC regulate MW? In online casinos, if you play and win, the casino owner pays you the money from his pocket.

You win and the casino loses. Binary trading operates in the same way the real name of this business is “Financial Betting.” Binary options trading is completely false label for this business. A live chat representative of MW gave the following statement: “However since all trades you buy are against the company, we view it as a conflict of interest to offer trading advice directly.” Here is a screenshot of the live chat discussion: It is up to you to decide whether this is gambling or not. Additionally, you should know that making profits in this business is only possible if you can come up with a good trading method otherwise, you will lose all your investment. Brokers advertise this as an opportunity that you can use to get rich quick these are all lies. Without a solid working method, you cannot make profits. Following is an example showing how financial betting, aka binary options trading, work: Step 2: Select An Expiry Time. Date: 2016-12-10 14:10:41. Said: If you analyze it carefully, you will know Binary Option is a scam.

1) how binary option brokers make money? 2) they make money from your every losing trade. But they put it beautifully that they only earn commission if you make money. 3) life is full of challenging, it is very difficult to tap on traders who knows how to trade, 4) thus they turn to big big very big market of those who does not know how to trade. 5) they offer “hold hands” method so that inexperienced traders are willing to pump in money. 6) to make it even more attractive, brokers even offer 100% bonus top up for every dollar you pump in. 7) Account Manager will call you and follow his signal to trade, 8) hey remember, who pays his salary? Broker, not you!! 8) he will make sure you lose every cents so that all your investments are “transferred” to broker’s account rightfully n cleanly. 9) broker makes money is good job for Account Manager, thus they can’t be bothered how you feel. They don’t call you any more! 10) in order to squeeze further from every drop of your blood, recovery Account manager will call you, sympathy your case and say that your previous Account Manager has been sacked! Because they made the company lose an important customer like yourself..

11) Recovery manager will “promise” recovering your investments in 3 to 6 months. They will entice you to pump in more money to trade conservatively. 12) after you pumped in your money, they will slice you stupidly for the second time…. 13) because you are more conservative this time, you will win & lose your trade, more lose trade of course! your investment will drain off slower until you realize that you are real stupid in this world !! 14) this tactics is the best scam on earth, you are being sliced twice and still do not know who they are!! 15) brokers and Account Managers now listen…I am not sure if you believe in retribution, karma and hell. Those money that you scammed successfully are peoples’ hard earn money. Believe or not, I know many has committed suicide because of your scam! They will haunt you down. You will not have good death!! You will never enjoy rest in peace.

Date: 2016-10-26 14:32:44. Said: I invested in a Cyprus company called Opteck… and they lost all my money in two hours… Opteck said they matched dollar for dollar. I invested 126,357 US dollars and Opteck made an even 300,000 US dollars. And all gone with out a guilty conscience. DO NOT INVEST WITH OPTECK CYPRUS. Date: 2017-03-02 14:55:56. Said: Useful Resources! Date: 2017-07-31 08:36:20. Said: In my comment I want to touch a few subjects. First of all, I am also a victim of binary options do not mistake for a second - it a well oiled machine operation from the middle east and has millions of victims and devastated lives behind them. I had worked with a company named 23 Trade, I trusted them and let the broker know that I’m a single mother that is in strangulation to raise her children and needs money, my bad. I was manipulated to invest 12K in 4 months time. All gone to the garbage and the explanation I got is that “this is trading. Sometimes you win sometimes you loose.” My luck is that my brother worked in IT, and know his way throw computers.

Once I explained to him what had happened, we started to search online to get more information and about the industry, we consulted a few law firms and decided that we are not going to let them to get away with it. After consultations with a few companies we did choose one (MBL) and we started to work to get my money back. I must say I was so broke that my brother actually gave me money for the process - it was devastating . In the end of this story, in a few mounts time I managed to get the funds back. Now I got to have a happy ending, but a lot of people are actually loosing they’re lives in the industry. Bottom line of what I wanted to say - ALL BINARY ARE FRAUD. period. No good companies. If you are, a victim like myself, do know that you can solve this situation. Go, read online, consult with lawyers. Just DONT let them get away. If i can - so can you too get your money back… 11 Comments on "Binary Options Trading is Gambling… or is it?" Throw your money down the toilet instead of wasting time in binary “TRADING”….

After losing lot of money, I finally was able to make some profits. I lost $10,000 then invested 5,000 again. With some claim trading, I made 500 dollars and requested BANC-DE-BINARY to send me this profit. Before this request, different a** ho*** were contacting me and were always telling me that I need to invest more and more money. When I requested a withdrawal all calls stopped and they did not respond to my emails. It has been 2 months now and they have not sent me the profits. I also tried to get my $5,000 back but because no one is replying to my requests, I am trapped in a dead-end. Live chat will sometime simply disconnect after knowing what the issue is. Sometimes, they tell me wait. BANCDEBINARY IS SCAM. I live in Pakistan, I tried to deposit money with my broker, but my credit card company called and told me that they are going to reverse the transaction. They also warned me to never use my card for business purposes. Can someone suggest a work-around? How can I deposit funds with if I live in Pakistan? Please help!

Hi, this is a trading scam period. Sir I am a Muslim and I want to trade, but some people say it is gambling, so what should I do? This certainly is betting, stay away from it. Not only your religion denounces it, but also avoid it as it is gambling, 99% of the time, you will lose all your money at the end of the day. Binary options trading vs Gambling. Binary options and Gambling. There are many articles circulating on the Internet these days that tend to equate. Such articles tend to degrade the ‘trader’ and replace the word with ‘ trader ’ with ‘ gambler ’, all in an effort to discourage binary options trading. While the purpose of such articles is unknown those curious about binary options trading would definitely find the article discouraging them from trading. So is binary options really just gambling or are such kind of articles misleading? Investment = Speculation = Risks. Ever come across a finance portal or a website that talk about stocks or some other financial markets? In most likelihood you might have come across the disclosure about how risky it is to invest and that financial investment is not suited for everyone. Such kinds of disclosures are required by law and are often seen on even some reputable websites. The truth about investing is that it is nothing but gambling on a large scale .

However, there are not many articles that are written about such investments… Bonds, stocks or even real estate. The fact is that financial investments are risky and in a way is a gamble. The chances of making a profit on an investment is always 50 – 50, just the way you flip a coin for heads or tails. So doesn’t this by definition equate to gambling? And how different is binary options from the above, where speculation for a price rise or drop is based on the time the contract expires? The business of financial speculation is vast. In other words, it is commonly referred to as speculative trading which ironically is employed by some well known globally established banks. Binary options, as we know are a derivative of the underlying security. Although it might differ in the way they are traded, the basic goal of binary options and forex or even stocks is the same. Buy at a low price and sell at a high price. With binary options, it is a little bit different as a trader bets on the price direction within the duration of the contract’s expiry time. This leads us to question…

so aren’t the big banks gambling too? One element that is common to the above is risk. Gambling is risky and so is financial investment. However, the risks are better managed when they are more calculated. For example, it is considered a worthwhile investment to risk a small amount in hopes to double or even triple the investment amount. Such an approach is referred to as taking a calculated risk. Trading is no different to taking calculated risks. For example, one of the articles mentioned previously, we talk about how to profit from news trading and short term binary options contracts. Such kind of a method gives us a calculated risk. Meaning that, a trader invests an amount in hopes of making a profit based on a common underlying theme that plays out in the market day in and day out. When does trading become gambling? Trading becomes gambling when the trader begins to trade on emotions and gut feel.

Greed and fear rule the emotions here and it is easy to get drawn into such type of trading. Unfortunately, most traders tend to fall for this trap, which is why it has led to so many critics that call for binary options or trading as a whole as gambling and nothing more. A gambler would trade simply based on gut feel or be engulfed by emotions and starts to trade CALL and PUT options for example with no real reason why. A trader on the other hand, researches, calculates the risk and ensure s that the trade that they make gives back more than the amount that they risk. Once a trader understands this basic philosophy, trading no longer becomes gambling. Binary Option Trading Vs Betting Vs Gambling. Binary Options Trading Vs Betting Vs Gambling. Have you ever think about betting and gambling comparison with Binary Options trading? Most people and most experts believe that Forex and Binary Options trading is like betting or gambling. I believe that this is not true because we have a different parameter in betting gambling and binary &hellip Binary Options Trading Vs Betting Vs Gambling.

Have you ever think about betting and gambling comparison with Binary Options trading? Most people and most experts believe that Forex and Binary Options trading is like betting or gambling. I believe that this is not true because we have a different parameter in betting gambling and binary options trading. Some parameters are similar but the others are different. Some experts say that “Binary Option is a gamble-don’t kid yourself” I think Binary Option is seeming straddles the line between financial trading and gambling let’s review them: Betting Vs Gambling. Table of Contents. When you are betting on sport, for example on a football match, you can predict the better team. Which will win and it is predictable by experts. You can watch the previous match and read the football analyzers review to get a good view of the next match and predict it. But in sports betting, players depend on many parameters that determine the outcome of the match. Also, not all matches bring your desire returns while higher grossing matches also carry more uncertainty.

Binary Options Trading. On Binary options trading, we have a lot of parameters like indicators or economic news. Market movement chart patterns and a lot of mathematical rules to predict the price. We have a lot of expert reviews sources also then we can find reasonable reasons to predict the market. Then it looks like both betting and Binary options trading are predictable because we have reasonable function to compare them. Gambling on a casino is not predictable when you are a gamble on a casino desks-you have not any analyzer sources or expert review to predict the next number or shape. Then Gambling is not like Betting and Binary Options trading in other hands. You get a return based on the probability of an event and it is always at a disadvantage to the player. You can gamble on both binary option or betting market you can bet or trade according to your chance! For example, just look at EURUSD and open buy or sell position without any reasonable reason! Or just bet on your favorite team on sports betting without any analyses or expert reviews.

Totally I can say that Binary option is predictable Betting on sports is predictable but not always Gambling on a casino is not predictable in gambling you can increase your winning change by using mathematical chance rules. Betting Vs Gambling. Which one is investing? No one can’t claim that Gambling is an investment opportunity! There is no any reasonable factor to say that you can look at gambling for your daily or monthly incoming! gambling is a fun game you can lose or win just for fun most people go to a casino for fun not to earn money for their life most of them earn money from their jobs and lose their money in the casino! Betting in this part is look like gambling most people just bet and lose their money in betting market they are looking for fun in betting market! Binary Option can be an investment opportunity because you can trade on Stocks or Currencies or Energy so It is possible to read expert reviews for your daily or hourly trading. Is Binary options trading like a gamble? If you ask this question and want know the short answer I should say yes! This is a gamble for you because you don’t know anything about this market! Then you will open your trade by chance in this scenario you are a gambler, not a trader. On Binary Options, some brokers offer you 30 seconds option. It means that you should predict next 30 seconds to earn a profit even expert traders can’t predict what will happen during next 30 seconds.

Then I think this kind of trading is not trade-it’s gamble. But on Binary options trading, you have another choice too like hourly trade or daily or sometimes yearly trade in this situation. You can predict the market and this is not like gamble or betting. Which One is more excited? If you are looking for a rapturous or amazing job, I think betting on your favorites team is very amazing. Playing in a casino is amazing. You will win or lose very fast and you can go to the casino and play physically. No online so it’s more excited than online gambling. On the other side, we have binary options trading. I believe only fast forex binary option is very amazing when a market goes up or down but when you are trading for a long time the amazing rate will decrease! Binary Options and Forex Trading: Understanding the Difference.

When you search on the internet Binary Options vs Forex Trading, you will find a lot of sources on comparing Binary Options Trading Vs Forex Trading. Here we want to rewrite and censure them. Table of Contents1 Forex and Binary Options Have Become Very Popular During Last Three Years!2 Trading Comparison Forex and Binary Options3 Which &hellip A Brief Description About Binary Options Strategies. Simple Strategies in Forex and Binary Options, There is a difference between Forex market and Binary Options market so you should not use your Forex strategies in Binary Options trading. In Forex market, you should predict the market direction plus movement pips. So there is no expiry time. You can hold your position for a &hellip Add your Comment Cancel reply. Categories. Live results of running Contest. Warning: Activity in the financial markets, particularly Binary Options has a high-risk, which means that you may lose part or all of your money. Investing and trading are not appropriate for everyone in CloseOption. The residents of Iran, North Korea, Iraq, Syria etc.

are not allowed to use our services and if you are residents of above-mentioned countries, please close the site and leave our site immediately. Proudly Powered by CloseOption Developers. Copyright 2015 - 2017 | All Rights Reserved by Organic Tech LLC. 7 Binary Options. Are you also still doubting whether binary options trading is gambling or not? Let us answer all your questions in this article. Binary options trading is a hot discussion topic anywhere in the world. There is a lot of information out there and it is difficult to make sense of it all. And the truth is that there is really false information out there and, as a result, a lot of false conclusions are drawn from it. This article will attempt to cover all the major questions around whether or not binary options trading should be classified as gambling or trading and whether it is a legitimate financial instrument. If you have read our recent update on binary options regulations around the world, you have probably noticed that many countries are not sure how to classify binary options.

Some choose to consider it a financial instrument while others still treat it as gambling. This shows a very weak understanding of the industry by even most qualified institutions. Some seem to imply that there is only one type of binary options when in fact there are many. For instance, there are those binary options that are fully regulated, trading on the NYSE and NADEX. There is also Binary Options Exchange. where one is able to be a writer and a seller of binary options. Gambling or financial instrument? Let’s set one thing straight and define once and for all what is gambling. If we look up this word in Merriam-Webster dictionary which is one of the most widely used English dictionaries out there, we’ll find out that gambling is defined as “to bet on an uncertain outcome”. Isn’t trading of any kind corresponds to this definition? Well, it really depends on what you looking at. If it’s an individual trade we are looking at, then it might be. But if you are trading a system that has a positive expectancy, then there is nothing unpredictable about it – you are making money! So maybe it’s better to take a different approach to defining what is gambling and what is a financial instrument? For that, let’s try to answer two questions: What are we trading?

If it’s not a system that overall has a positive expectancy, then the outcome it truly unknown and we are gambling, not trading. How are we trading? If we are following a trading method that has a positive expectancy, then everything is fine. If not, then we are gambling. Let’s now look at some examples to illustrate this: Slot machines in a casino. Without any doubt, this is gambling. The outcome is unknown and if you play long enough, you will surely lose. Everyone knows that the house always wins. Trading with a system that has a positive expectancy. This is clearly what we define “trading”, as over a period of time you are sure to make money. Trading stocks without a system that has a positive expectancy. Now, this is gambling. If there is no sure positive expectancy, then we are still likely to lose money over a long period of time.

Expectancy type settles the dilemma. So, coming back to the question of whether or not binary options should be considered as gambling, we have to carefully look at each category of binary options and decide whether it is possible to develop a system with an overall positive expectancy. If such a system cannot be developed, then this following up on it is gambling. However, if there is a possibility of developing a system with a positive expectancy, then this is called trading a viable financial instrument. If you on the surface of trading using OTC (over-the-counter) binary options broker, this might be considered as gambling. On the other side is always a broker and the odds always in broker’s favor. This is because in this situation you can only a buyer here, buying a put or call option. And even if you are right, you are still to make less than what you are risking. For instance, if your broker offers 80%, you are to make only $80 on the trade where you are risking $100. So the only way you can be sure you are trading and not gambling is to develop a system that has a positive expectancy. For this, please follow our Education series to find out more about various strategies and options types.

Educating yourself and practicing is the only way you can be sure that you are trading using reliable financial instruments. Related content: Leave a Reply Cancel reply. Best Auto Trading Robot. Average return in our test: 91% Price: free Compatible brokers: 11 Accepts US customers 7BO Award 2017 winner - Best Robot. Best Robots and Signal Services. Best satisfaction rate (96%) Excellent trading platform Best customer service 7BO Award 2017 winner - Best Broker. Trending Broker Reviews. Popular Articles. Kyle on ExpertOption Art LaCourse on Bloombex Options ryan on Stern Options Jeenu Jancy Tony on Binarymate Cinematographer in jaipur on Binary Option Robot email protected on Brokers Igor on EmpireOption. 7 Binary Options News.

Newsletter. Average return in our test: 91% Price: free Compatible brokers: 11 Accepts US customers 7BO Award 2016 winner - Best Robot. 7BinaryOptions. com Worldwide. About Us & Disclaimer. Disclaimer: 7 Binary Options will not be held liable for any loss or damage resulting from reliance on the information contained within this website. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author. 7binaryoptions. com is only a website offering information - not a regulated broker or investment adviser, and none of the information is intended to guarantee future results. Binary option trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade binary options or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. In accordance with FTC guidelines, 7BinaryOptions.

com has financial relationships with some of the products and services mentioned on this website, and 7BinaryOptions. com may be compensated if consumers choose to click these links in our content and ultimately sign up for them. By using this website you agree with the limitations and exclusions of liability set out in this disclaimer and the separate disclaimer page. If you do not agree with them, you must not use this website. Binary Options Or Blackjack? If it were easy to make a profit trading binary options, everyone would do it. Indeed, there is nothing as enticing as a sure thing. Of course, the notion that every trader can profit on each of his or her trades is a mathematical impossibility. And therein lies one similarity between binary options and gambling: for any given trade, at least one party wins and at least one party loses. Having said that, it’s important to draw a distinction between the two activities. Much has been written about binary options betting being misrepresented as a form of investment.

Critics liken it to gambling, implying it’s similar to buying a lottery ticket. Fans describe it as similar to investing in stocks. The truth is, both sides are wrong. There are more compelling similarities to make between trading binary options and blackjack, a game in which players can shift the odds in their favor. The “Secret” About Gambling & Binary Trading: Odds Favor The House. Gambling is loosely defined as putting something of value at risk on an event for which the outcome is undecided in the hopes of winning something of greater value. For example, you might wager $100 on a spin of the roulette wheel for the chance to win $200. The outcome of the spin, and thus your wager, is uncertain. With casino gambling, nearly every game – whether roulette, craps, or pai gow – gives the house an edge. This is the advantage the house has over the player. It represents the percentage profit the casino will make on the player over the long run. The longer you play, the closer your losses will approach the edge (hence the phrase “the house always wins”).

The odds are always in the houses favor. One of the only exceptions to this rule is blackjack, the game most similar to trading binary options. A skilled blackjack player can reduce the house edge to nearly zero. But a skilled player who counts cards can actually move the odds to his favor, essentially giving him a consistent edge over the house. In the next section, we’ll explain how binary options and blackjack are similar. How Trading Binary Options Is Similar To Blackjack. Counting cards in blackjack is basically a method for gaining information. Keeping track of the cards that have been dealt allows the player to make better informed decisions. This is comparable to most forms of investing. The investor who possesses the best information has a greater likelihood of making a profit.

So too with binary options trading does information play an important role in whether an instrument expires in the money or out of the money. For example, suppose you’re considering a simple up-down contract with gold as the underlying asset. You strongly suspect the Federal Reserve is about to announce a new round of “quantitative easing,” a monetary policy to expand the money supply. Unlike many other traders involved with binary options, you realize the money supply and the price of gold are directly correlated. Expand the former and the latter generally rises. TOP RECOMMENDED BROKERS. Notice with this example that you’re using information to your advantage, similar to the card counter in blackjack. And just as the card counter can shift the odds into his favor, so too can you improve the likelihood that the binary options you execute will expire in the money. Trading Binary Options When The Odds Shift In Your Favor. With any form of investing, the goal is to reduce your risk while maximizing your potential return.

The same is true when you trade binary options. If you execute trades without knowing what you’re doing or understanding how the underlying assets react to various forces, you are essentially gambling. It is no different than betting on red in roulette. However, if you analyze the asset in question, and track important criteria (or invest in a binary options trading signals service), it becomes possible to make a consistent profit. Not all of your trades will expire in the money. In fact, depending on your trading method, a majority may expire out of the money. But information can help minimize the risk and increase the likelihood of an overall profit. Binary Options Or Blackjack: Which Is A Better Bet? Given that trading binary options is similar to playing blackjack (in some ways, at least), which activity should you participate in? Other factors remaining the same, binary options betting is a better choice. Here’s why: First, blackjack is a game.

The events that occur during the course of a shoe do not affect the events that occur during the next shoe. You are essentially forced to start over with your information-gathering efforts. When you trade binary options, each trade’s outcome provides more insight into the behavior of the underlying asset. That information can then be used to increase your chances of executing in the money trades down the road. Second, playing blackjack usually requires visiting a land-based casino or local game. While there are many online gambling sites that offer blackjack, few remain open to U. S. players. By contrast, a majority of binary options brokers will happily accept your trades if you live in the U. S source. Third, when you play blackjack, you don’t truly know how much money you stand to win or lose on a given hand. You might start by placing $50 on your initial cards, but decide to split eights or double down on 11. Your $50 can suddenly place $200 or more at risk. With binary options trading, your potential gain is predetermined. Moreover, your potential loss is limited to the initial amount you invest. It’s also worth noting that many binary options brokers give traders a rebate on trades that expire out of the money. Is Binary Options Betting Actually Gambling?

To be sure, trading binary options comes with risk – in fact, a substantial amount of it. It is, by its nature, speculative, which is the reason the potential returns are so high. But it is unlike common forms of gambling, where information gathered beforehand serves little use. Even the game to which binary options betting is most similar (blackjack) poses disadvantages by comparison. You can earn or lose a lot of money with binary trading. While it is not illegal to trade binary options, it depends on how you define gambling as to whether or not you would consider binary options gambling or not. Legally and technically they are not the same thing. You can earn or lose money trading forex, investing in stocks, or even just sitting on your cash via inflation. The best way to approach binary options (your best bet, so to speak) is to treat them as a speculative form of investment that is accompanied by a high degree of risk and return . Then, learn as much about the underlying assets as possible to shift the odds in your favor. Find a reputable broker and give it a try.

100,000’s of others have already done so. NOTICE. BinaryTrading. org has financial relationships with some of the products and services mentioned on this website, and may be compensated if consumers choose to click on our content and purchase or sign up for the service. – U. S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to BuySell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC rule 4.41 – hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading.

also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. no representation is being made that any account will or is likely to achieve profit or losses similar to those shown. Please note: All content on this website is based on our writers and editors experiences and are not meant to accuse any broker with illegal matters. The words Scam, blacklist, fraud, hoax, sucks, etc are used because all content on this website is written in a fictional, entertainment, satirical and exaggerated format and are therefore sometimes disconnected from reality. All readers must personally judge all content and brokers on their own merits. Additionally, visitors comments are not moderated other than the obvious link spam. People lie. Use your discernment. DISCLAIMER: Trading binary options is extremely risky and you can lose your entire investment. Only deposit and trade with money you can afford to lose. Always refer to local laws, jurisdictions and authorities before performing any action on the internet. The content on this website is NOT financial advice and by use of this site you agree to hold us 100% harmless for any loss.