Best binary trading gambling

Is Binary Options Trading Gambling? Photo: Mark Hesseltine. There is a mystery cloud going around Binary Options, caused by the lack of knowledge of general public, there are a lot of speculations and wrong information coming from people that don’t have any real knowledge nor experience with Binary Options and it is in their nature to speak about things they are not very clear about. There is the ultimate speculation about Binary Options: Is Binary Options Trading gambling? As you probably know already, BinaryOptionsTrading-Review. com has an international team of highly experienced traders and we all agree on this – Binary Options Trading does not have to do anything with gambling! Is Binary Options Trading Gambling | Odds. As we do not want to stop on a pure statement here is why we are claiming that Binary Options Trading is not gambling. Imagine yourself throwing a dice. With Ceteris Paribus applied, you have exactly 16 chance that you will get a single number. You do not have any influence on what number it is going to be nor there is a way you can predict that you will get the number you wanted. Again, the chances will always be the same, with each throw of the dice.

Binary Options Trading offers us something different than just throwing a dice or flipping a coin… What differentiate Binary Options Trading from gambling is KNOWLEDGE that you are investing in a single trade. Is Binary Options Trading Gambling | Real Example. Let us take for example trading Binary Options with Gas as an asset. Unfortunately, there is a crisis going on between Russia and Ukraine, two big producers and consumers of Gas. Russia is providing Gas to more than “half of Europe” trough Ukraine. With conflict of this two giants Gas supply is immediately becoming insecure. Using basic knowledge and everyday information it is very easy to predict the direction of the price of Gas. Now, to go back to Binary Options, with having two options to choose, high or low, or starting 50% chance if you want, you are now putting your investment on prediction that price of Gas will go up or down. So, with the starting chance of 50% you add your knowledge about what is going on with, in this case, Gas and your chances become incredible higher, certainly much higher than 50%. Is Binary Options Trading Gambling | Conclusion. If you respect your knowledge and you know what is going on around you in the world, Binary Options Trading is risk controlled method for investing your money and there is no way we can speak about gambling.

If you close your eyes and ears and just randomly choose high or low option, than yes, they are right, Binary Options Trading is gambling. In the world of common sense, to conclude again, we definitely can not put Binary Options Trading and gambling into the same box. Best binary trading gambling Binary options trading sounds too legit to be anything but above board. After all, this involves publicly traded stocks and commodities. Lately, however, it has been criticized as nothing more than gambling, pure and simple, yet the buzz around it is getting louder and the promise of easy money is attracting the attention of people from all walks of life. What is it, really, and is it something the ordinary weekend investor like you and me should even care about? What are binary options? Binary is an apt adjective for this type of option. In programming parlance binary used to describe either of two states. 1 or 0. In the sports betting industry binary options are also popular – win or lose. In other words, there are only two possible outcomes.

There is some basis to this all or nothing description of binary options trading. Here’s a short explanation of how it goes. Take the price of any asset at any point in time. You make an intelligent guess on whether this price will increase or decrease over a specific period of time and bet $100 that you guessed right. If you are you win back your bet and plus a pre-agreed amount. If you’re wrong you lose almost all of your $100. Of course it’s not as simple as that. In fact, there’s serious math behind binary options and people who engage in binary options trading, like all others involved in financial markets, are pretty confident that their numbers are better. Because in a single binary option trade, the outcome for the participants is also binary. One loses, one wins. Let’s get a bit more technical than the simple explanation above. As currently practiced, binary options trading involves three main components. First, there is an underlying asset, the future value of which becomes the basis for the trade. This asset can be the price of a specific company’s stock.

It can be a traded commodity such as gold. Recently, there was an industry filing at the Commodities and Futures Trading Commission to allow exchanges to offer binary options for future box office receipts of certain films. Second is the direction of trade. This is your guess of what the price of the asset will be at a specific point of time in the future and you make your trade based on whether this price will be above or below the current price at the time that the binary options contract was made. Third is, of course, the amount you wish to trade. A binary options glossary. Like most specialized fields, binary options trading has its own jargon. These words are borrowed from the more established practice of commodities and futures trading, and gives binary options an aura similar to that of derivatives. Current price. The price of the underlying asset. Strike price.

The price of the underlying asset when the binary option is purchased. Expiry price. The price of the underlying asset at the time of expiry of the binary option. Call option. The right to buy. In binary options trading, the purchase of an offer is an exercise of the option. In American exchanges this is termed as “Finish High” because the motivation behind a call is the probability that the price of the asset when the contract expires will be higher. Put option. The right to sell. This is also exercised when the offer to sell an option is taken. This is called “Finish Low” in American exchanges because a put is based on projections that the price of an asset will be lower when the contract expires.

In-the money. A successful trade wherein a call option expires above the strike price or a put option expires below the strike price. At-the-money. A trade in which the price during expiration is identical to the level during purchase. In some binary options contracts, such a scenario requires the initial investment amount to be fully returned to the customer. Out-of-the-money. A failed trade wherein a call option expires below the strike price or a put option expires above the strike price. Essentially, “options” is a misnomer for these types of transactions. “Lock” (another type of derivative) would have been the more appropriate term because once the deal is sealed, both buyer and seller are obliged to comply with whatever conditions were agreed upon to take effect at the contract’s expiry. One other thing to remember is that trading in binary options only involves the price of underlying asset, but not the asset itself. You might be trading binary options for the price of Google or Apple stocks or gold, but there is no assumption that the seller owns any of these assets or that that you will when the contract expires. What makes binary options attractive? Fixed risk and reward. Most binary options are Fixed Return Options (FROs) in which the gains and losses (the risk-reward ratio) are predetermined.

You know exactly what you’ll earn should you be in-the-money, or what you would otherwise lose if you happened to be out-of-the-money. In a $100 trade, for example, many options offer a return of 81% for a successful trade. Many also offer to return 10% of the purchase amount should your trade be out-of-the-money. Capped risk. You will never lose more than what you’ve invested, which is all too possible in other investments like foreign exchange or real estate. Assured reward. By the same token, gains are not dependent on the price of the asset during expiry. Regardless of whether the increase in price is a fraction of a point or double the strike price, the winner gets the entire payoff amount. Simpler to understand. In binary options trading you only need to sense the direction of the price of the asset you’re trading. With regular options, you need to know both the direction and the magnitude of the price. High level of sophistication. While easier to understand than most options, binary options still offer enough freedom for the application of sophisticated investment strategies.

Investors in the forex market use binary options to hedge against their currency investments by investing in an opposite direction to their traditional forex position. Regardless of whether prices rise or fall, they’ll have their losses covered or might even profit from their binary options position. Shorter durations. In some exchanges, many contracts close within the day. Some durations last for only an hour so the gratification (or mortification) is instant. It is possible to participate in many options within a single trading day. Potential to profit from both falling and rising markets. In regular stock and commodity markets, money is made only when the price of the asset is rising. Binary trading allows an investor to absorb some of the market’s risk and make money regardless of whether prices are falling or rising. Access to multiple markets. From a single account, you can have access to a wide range of markets and asset classes including forex, shares, commodities like oil futures and stock indices.

Other types of binary options. Binary options can either be cash-or-nothing, where a fixed amount of cash is paid out. It can also be an asset-or-nothing option where instead of cash the value of the underlying asset is paid out. Aside from these basic types, there are other more exotic binary options that are a bit more complex but follow the same general concept. Barrier options are options that depend on a specific price level for their existence within the duration of the options contract. They can disappear ( knocked out ) or appear ( knocked in ) when a specified price level is breached. In partial barrier options , the price is monitored only for a specific window within the duration. In a double barrier option , there is both an upper and lower price barrier and the double knock ins are activated or a double knockout terminates the option if any of those barriers are hit. The more complex double barrier binary option , of which there are 28 types, combines the characteristics of both barrier and binary types. Are binary options a safe investment? As with any other form of investment, risk is inherent in binary options. In fact, websites that guarantee returns are the ones you should stay away from. There have been complaints of payoffs not being remitted to bank accounts, so you’ll need to do due diligence before committing.

The best idea is to always go with one of the best binary options brokers that you know are legitimate and reliable. If you’re serious about trying binary options trading out, selecting a reputable trader is the first critical step. There has been a proliferation of trading websites online and it can be quite confusing to know which is legit and which is not. Start with traders registered with the Chicago Board Options Exchange (CBOE) or the American Exchange (Amex) to be sure that the firm you’re dealing with is subject to regulation. Fixed return options are more common in Europe and are traded in European exchanges heavily, thus the nickname European options. There have been reports of Europe-based sites engaging in unauthorized binary options trading. The financial crisis of 2008 has awakened every American to the very real threat Wall Street presents to their personal financial health. The clamor for financial reform has resulted in the Dodd-Frank Act being passing into law in 2010. However, regulation for binary options trading is not explicit in the implementing rules and guidelines although proposals for rule changes have been discussed in the Securities and Exchange Commission (SEC) and predate the creation of the Dodd-Frank Act. For now and until the rules are in place, prudence in this investment area will always be your biggest safety net. Are binary options a good investment? Yes, if you have the stamina to monitor prices closely, the diligence to study the history and performance of the underlying asset you’re trading, and no past history of compulsive gambling.

Forbes columnist Gordon Pape issued a strong warning against binary options. He claims that this form of trading appeals to the online poker crowd and market junkies who tend to be more exuberant in taking chances than the ordinary investor. In fact, he refuses to acknowledge binary options trading as legitimate investment. He insists that it is a pure gambling activity where the odds are stacked against the investor. Gordon Pape claims, as do others, that you need to win 54.5% of the time to just break even. For some, these odds are good enough, even if the house gets the better deal. For the house, it’s like having hundreds of slot machines that won’t ever pay out a jackpot. For the investor, on the other hand, binary options multiplies his chances of winning each time he cranks the machine. Not the jackpot, maybe, but big enough if one keeps at it and does the homework. Will you bet on binary options? B2B News » What Is Payroll Management Process? 5 Reasons to Use Payroll Software. Any business that has more than one employee must have a payroll system.

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e-Signature software helps you to electronically sign and send business documents. Digital signatures are very secure and used commonly in e-commerce and regulatory filings. Take a look at these stats … Seems youЂ™re in the wrong place! Are you looking for the Deutsche version of the site? Sign in with a simple click: Join with a simple click: Sign Up via Facebook Sign Up via Twitter By clicking, you agree to the Terms & Conditions. Sign in with a simple click: Are binary options gambling? If so, are they a smart bet? Binary options: or &lsquofixed-odds trading&rsquo seemingly straddles the line between financial trading and gambling, to the point that bookmakers are starting to get in on the action. Despite incurring the wrath of experienced marketeers, fixed odds traders and brokers remain undeterred. The question remains, is buying binary options a form of gambling and if so, is it a chump game? In 2010, Gordon Pope published a polemic in Forbes, slamming binary options (AKA all-or-nothing options, digital options, or Fixed Return Options (FROs)) as little more than a &ldquofinancial crap shoot.&rdquo Pope&rsquos particular beef with binary options was their masquerading as a legitimate form of trading: &ldquoBinary option brokers somehow have an aura of being more respectable because they represent themselves as offering a form of investing,&rdquo he said. &ldquoDon&rsquot kid yourself. These are gambling sites, pure and simple.

&rdquo Four years on, the sector shows no sign of abating. A quick Google search for the term &lsquobinary options&rsquo produces nearly 6,000,000 results, with a raft of paid results promoting &ldquoTop Brokers&rdquo and &ldquobonuses for fixed odds trading.&rdquo This is certainly familiar territory for someone hailing from the igaming sector. So is it gambling? Is it investment? Is it something in-between? Let&rsquos look at the facts&hellip What are binary options? Binary options are a form of financial option: i. e. a contract in which a buyer obtains the right to buy or sell an asset (stocks, commodities, indexes Forex etc.) at a specified price (called the &lsquostrike price&rsquo) within a given timeframe. The time at which the contract expires is known as the &lsquomaturity date.&rsquo In the case of a binary option, the pay-out is &lsquoall or nothing,&rsquo meaning you either receive a set return on your option at the maturity date or nothing at all.

The outcome depends on whether the option finishes above or below the strike price at the maturity date. If the buyer thinks the option will be above the strike price when their contract expires, heshe &lsquocalls.&rsquo If they believe the value will be lower than the strike price at the maturity date, they &lsquoput.&rsquo The price of a binary option is set by the stock broker depending on their assessment of the probability of the option increasing or decreasing in value. For example, a contract with a value of $100 might trade at $94%, which indicates that 94% of the market believes the contract will finish &lsquoin-the-money.&rsquo The short answer is: yes. The trouble with typical binary options is that they tend to mature quickly, sometimes in the space of 60 seconds. Even expert traders cannot accurately predict the machinations of the market in real-time, so this kind of &lsquotrading&rsquo can only ever amount to a gut hunch. While some brokers do provide longer-term contracts (occasionally up to a year), the fixed nature of binary trading means that you will not be able to buy or sell percentage shares as the market fluctuates. You will be stuck with the same contract at maturity that you negotiated when you purchased the option. Furthermore, brokers tend to maintain an edge over buyers, as Pope demonstrates with an example: &ldquoA Web site pays $71 for each successful $100 &ldquotrade.&rdquo If you lose, you get back $15. Let&rsquos say you make 1,000 &ldquotrades&rdquo and win 545 of them. Your profit is $38,695.

But your 455 losses will cost you $38,675. In other words, you must win 54.5% of the time just to break even.&rdquo All of this goes without mentioning high, implicit transactional costs on fixed-odds trading. While brokers do not charge per-trade fees or collect commissions, there is usually a difference between the strike prices on either side of the contract: this is where you get the transaction fee. These fees can sometimes wipe out any marginal gains achieved through purchasing binary options. So, I shouldn&rsquot buy binary options? This is a more complicated question. In fact, there are a lot of advantages to fixed-odds trading compared to both traditional investment and other forms of gambling. Firstly, binary options come with a controlled risk: you will only ever lose the price of the contract. Traditional options, by contrast, do not have defined boundaries of risk and reward, meaning that potential gains (and losses) are unlimited .

Buying binary options is also far simpler than other forms of trading. No assets are actually being bought or sold, meaning that the selling of shares and stop losses do not factor into the process. Also, binary options can be optimised using the same fundamental and technical analysis strategies that aid in price movement prediction in traditional financial trading. There are definitely some markets that offer better odds than others (for instance, you should stay well-clear of high yield options and trading run bets). No such thing as method? There are some industry figures who reject my premise altogether, arguing that you can see a positive ROI from binary options, if you trade intelligently. For instance, Adam Grunwerg, CEO of the online trading school Investoo. com , maintains there is profitable method for binary options trading. &ldquoIt&rsquos perfectly possible to trade a positive ROI with binary options, as taught through some of the strategies in our trading school,&rdquo he says. &ldquoWhether you&rsquore using technical analysis such as supportresistance and trend lines or trading major news releases such as the NFP, the only thing that really matters is that you choose the correct expiry time. While it&rsquos true that OTC binary options brokers do make money from losing trades and only payout 75%-80% on winning trades, this is also similar to how Market Maker brokers in Forex operate (although in Forex the potential size of the payout is reduced via the spread size). "Furthermore, while many spectators view the low expiry times of 5m-10m in binary options as pure gambling, this is no different to how professional scalpers in the Forex make money, rapidly opening and closing trades with 2-3 minutes.&rdquo Make of this what you will. For my money, there is very limited evidence of binary options providing a long-term positive expectation for the buyer.

Any reported gains fall well within the boundaries of variance. That being said, as long as you approach these markets for what they are &ndash a form of financial betting &ndash they can be fun and even somewhat strategic. Just don&rsquot get any &lsquoWolf of Wall Street&rsquo delusions. You must be logged in to leave comments. Click here to login. Most Popular News Articles. Seems we couldnt find any articles to show you here : You must be signed in to leave a reply. Click here to sign in. 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. This exclusive report aims to serve as a manual, answering all of the questions on the Chinese multi-asset trading industry that you were always afraid to ask. The following terminology applies to these Terms and Conditions, Privacy Statement and Disclaimer Notice and any or all Agreements: "Client", “You” and “Your” refers to you, the person accessing this website and accepting the Company’s terms and conditions. "The Company", “Ourselves”, “We” and "Us", refers to our Company. “Party”, “Parties”, or “Us”, refers to both the Client and ourselves, or either the Client or ourselves. All terms refer to the offer, acceptance and consideration of payment necessary to undertake the process of our assistance to the Client in the most appropriate manner, whether by formal meetings of a fixed duration, or any other means, for the express purpose of meeting the Client’s needs in respect of provision of the Company’s stated servicesproducts, in accordance with and subject to, prevailing English Law. Any use of the above terminology or other words in the singular, plural, capitalisation andor heshe or they, are taken as interchangeable and therefore as referring to same. We are committed to protecting your privacy. Authorized employees within the company on a need to know basis only use any information collected from individual customers. We constantly review our systems and data to ensure the best possible service to our customers. Parliament has created specific offences for unauthorised actions against computer systems and data. We will investigate any such actions with a view to prosecuting andor taking civil proceedings to recover damages against those responsible. We are registered under the Data Protection Act 1998 and as such, any information concerning the Client and their respective Client Records may be passed to third parties. However, Client records are regarded as confidential and therefore will not be divulged to any third party, other than Finance Magnates , if legally required to do so to the appropriate authorities.

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These terms and conditions form part of the Agreement between the Client and ourselves. Your accessing of this website andor undertaking of a booking or Agreement indicates your understanding, agreement to and acceptance, of the Disclaimer Notice and the full Terms and Conditions contained herein. Your statutory Consumer Rights are unaffected. © Finance Magnates 2015 All Rights Reserved. Binary Options – Trading or Gambling? If you're still unsure whether binary options is more like gambling you should read this article. This guest article was written by Simon Klein who is a professional trader with over 10 years of trading experience. Simon has a passion for trading and loves to train and coach others – whether a complete beginner or an experienced trader. He is also the founder of TradeSmart4x. com. Binary Options are a hot topic at the moment.

There is a lot of misinformation out there and conclusions are being drawn based on a lack of knowledge instead of being based on a deep understanding. This article will cover the interesting topic about how to classify whether the activity you are doing is considered trading or gambling and will uncover how to ascertain whether what you are trading is a financial instrument or not. It appears, based on a recent article, that regulators in different countries do not know whether to classify binary options as a financial instrument or gambling. This statement shows a shallow understanding of binary options as well as financial instruments. There are a number of types of binary options and this article appears to imply that there is only one. For example, there are fully regulated binary options that trade on the NYSE and NADEX. There is also a Binary Options Exchange where you can be the writer and seller of binary options. Gambling or financial instrument? According to the Merriam-Webster dictionary, gambling is defined as “to bet on an uncertain outcome”. Isn’t trading any financial instrument according to this definition gambling?

Well, it is if you are just looking at the outcome of one individual trade in isolation. If on the other hand, you are trading a system that has a positive expectancy then the outcome of a large enough number of trades is not uncertain anymore – you will make money! I would like to offer a different and novel approach to understanding the nature of trading and gambling. The approach is based on a two prong analysis that looks at both the nature of the “instrument” that you are trading and how you are trading. What are you are trading? If there is no system that can be developed that has a positive expectancy, then you are gambling and what you are “trading” is not a viable financial instrument. How are you trading? If you trade any financial instrument without a method that has a positive expectancy, then you are gambling. Let us take a look at a few examples to see whether you are gambling or trading. Playing the slot machines in a casino. This is clearly gambling as the odds are in the favor of the slot machines over time. If you play long enough you will always lose.

The casino always wins. Trading options with a system that has a positive expectancy. This is clearly trading and not gambling as you will make money over time even though the outcome of any one trade is unknown. Trading stocks without a system that has a positive expectancy. This is clearly gambling according to our 2 prong test above, as it is uncertain whether you will make money over time. So in this example, you can see that even though you are “trading” a financial instrument, what you are doing is still considered gambling. Expectancy type could settle the dilemma. To address the issue as to whether binary options are gambling or trading, you have systematically look at each category of binary options and decide whether you can develop a system that has a positive expectancy or not. If there does not exist a system of trading that has a positive expectancy, then you are gambling and what you are trading is not a financial instrument. If on the other hand, you can develop a system of trading that has a positive expectancy, then you are trading and what you are trading is a viable financial instrument. If you take a look, on the surface, at trading binary options through an OTC (over-the-counter) binary options broker, it would appear that you may be gambling. This is because, on the other side of each of your trades, is the broker.

The odds are in the broker’s favor. This is because you can only be the buyer of the binary options. You can either buy a put or a call. If you win you will always profit less than what you risked. For example, in the language of most binary options brokers, you can make 80% return if you are right. This means that you will have to risk $100 to make $80 and if you are right 50% of the time, you will have a negative expectancy. The broker, on the other hand, will have a positive expectancy. The only way that you can make money over time when your reward is less than your risk is ONLY if you are able to develop a system of trading that increases the percentage of winning trades to a point at which you will have a positive expectancy. Exclusive: Israeli Regulations Lead to SpotOption Halting Binary Options Activity. Swiss Watchdog FINMA Warns Against Brokers Option. Chairman of Israeli Financial Regulator Hauser to Resign in Early 2018.

Is Binary Options Gambling? Binary options are not gambling simply because there are regularities one can exploit in order to make money. 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. 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 method 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 a lot of 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. 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 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 playertrader. The house has the edge and the house always win in the end. If you are interested in Casino Games, and other forms of online gaming, we suggest visiting Casinolisten. com for the best recommendations in the industry. 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.

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 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 traderplayer 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 gamemarket 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. 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 method 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. Get a no deposit demo account for free with IQoption. News archive. Min. Deposit Sign Up Bonus $10 up to $300. Trusted Forex Broker. Min. Deposit Max.

Leverage $100 1:400. Top Trading Platforms. Broker Min. Deposit Min. Investment Reviews $250 $25. Please visit our sponsors. Copyright © 2012-2017 All Rights Reserved Fair Binary Options - de. Disclaimer: This website is independent of binary brokers featured on it. Before trading with any of the brokers, potential clients should ensure they understand the risks and verify that the broker is licensed. The website does not provide investment services or personal recommendations to clients to trade binary options. Information on FairBinaryOptions. com should not be seen as a recommendation to trade binary options or a be considered as investment advice. FairBinaryOptions. com is not licensed nor authorized to provide advice on investing and related matters. The potential client should not engage in any investment directly or indirectly in financial instruments unless (s)he knows and fully understands the risks involved for each of the financial instruments promoted in the website. traders from your country.

Binary Options Robot. No download Automatic updates 100% binary auto trading. Is this your final decision ? We suggest you visit one of the popular brokers instead! Help FairBinaryOptions remain fair. Hey there, we noticed you are using AdBlock. While we understand ads can be annoying we rely on the revenue from advertiser to manage our website. 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.