Is binary options like gambling

Is binary options like gambling

 · Binary Options is like gambling in a couple of ways. It is, however, also a form of trading that can be used for speculating the markets, which is not gambling. Like gambling you are putting down your money on an event of chance. Like gambling you are doing this for the purpose of gaining a payout and like gambling you are not creating wealth, merely profiting from an outcome Binary options is risky that's a fact and to some extent it feels like gambling but it isn't. i have been trading binary options for some time and i can tell you one thing is that you should always do your due diligence before you place your trade or you will end up losing everything. it is not like gambling where you depend on luck 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

What Does Gambling Have In Common With Binary Options?

Unfortunately, or fortunately, Binary Options have a lot in common with gambling. That is why Binary Options get so much flak from the mainstream investment world. The thing is, whenever you point your finger at someone else you have three fingers pointing back at you. Traders can gamble on stocks, bonds and commodities. Gambling, is binary options like gambling, like beauty, is in the eye of the beholder. It all comes down to how you approach your trading, what drives you to trade, how you make your decisions and if you are able to sleep at night.

The difference between gambling and trading has nothing to do with the vehicle. A desperate person can make a risky as hell gamble on market direction using stocks, options, futures or forex just as easily as he can by is binary options like gambling Binary Options. Before I begin to expound on why Binary Options are and are not gambling, lets dig a little deeper into what gambling is, and how it relates to investing, trading and is binary options like gambling. By definition, gambling is the wagering of money on an event of uncertain outcome for the purposes of material gain.

In order for gambling to occur three conditions must be met. First, there must be some consideration, i. Second, is binary options like gambling, there must be some form of chance involved, IE the toss of the dice, turn of a card or direction of market movement. Third, there must be some reward or prize given, otherwise there is no point in the activity. To extend this definition to gaming, gaming is gambling allowed by law.

The key word in this definition I think is uncertain, the wager is on an event with an uncertain outcome. There is some uncertainty with Binary Options so they have that in common.

Moving on to investing, the definition here is an item or asset purchased with the intent of making wealth or creating income. When you invest you are actually buying something such as a stock that pays a dividend, goods or inventory for future sale or a factory where you produce something of value.

In the financial sense investments include stocks, bonds, mutual funds and other tangible assets that provide income or have a reasonable expectation of appreciation such as real estate. The key is that an investment has tangible, inherent, value, is binary options like gambling, whereas a gamble has no value.

Binary Options are not an asset in the sense of investing. When you buy a binary position you gain no inherent value, you do not control the underlying asset, so binary also has that in common with gambling.

Trading is the actual exchange of money for assets or positions. This can be for bonds, gold, is binary options like gambling, oil, stocks, indices or Binary Options.

When you give money for a position, or accept money for a position, you are trading. Everyone who participates in the market is a trader. An investor makes a trade when he buys shares of stock XYZ. A speculator makes a trade when he shorts oil or buys a call option on the Is binary options like gambling Jones Industrial Average.

The big difference between the two is expectations. The investor knows that it will take time for his investment to pay off and it is the pay off over time that he is looking for. Speculating is where the lines between trading, Binary Options and gambling get really confused. Speculation is the is binary options like gambling of trading or investing in the market in such a manner as to appear to be gambling. Speculators use derivative investment vehicles like options to try for big gains while limiting losses.

This can be as simple as opening a position with a tight stop loss or as complicated as in depth fundamental and technical analysis couple with sound money management techniques.

It can also be very risky, or very safe, it all depends on how you approach it. A gambler can make no analysis of his market. You may say he could count cards or use some other such mathematical probability, but the gaming houses frown upon that. I never heard of any trader, investor or speculator getting his fingers broken for counting a moving average or trading on a support break. So, in terms of Binary Options, a speculator will use analysis to make a trade whilst the gambler will just make a trade.

Binary Options is like gambling in a couple of ways. It is, however, also a form of trading that can be used for speculating the markets, which is not gambling.

Like gambling you are putting down your money on an event of chance. Like gambling you are doing this for the purpose of gaining a payout and like gambling you are not creating wealth, merely profiting from an outcome, is binary options like gambling. Like gambling, Binary Options can be approached with risk and without a plan.

It can also be approached as a speculation using analysis and management. Management is the key to successful Binary Options trading and speculating and it comes in a couple of forms. What do you need to manage risk? Going back to the definition of gambling and the word uncertain. Uncertainty creates risk for you as a trader. The very best trades and traders are not betting on events of uncertain outcome. They are speculating on the direction of market movement using years of experience, scientific and mathematically derived analysis as well as an understanding of market is binary options like gambling, business and the economy.

This is a far cry from a gambling junkie trying to Martingale himself out of a hole on the spin of a roulette wheel or turn of a card on the blackjack table.

Risk management is also not betting your whole account, or a large portion of your account, on one trade. Only the rankest gambler would bet their whole stake, or a large enough portion of their stake to wipe them out, on one trade. In the end it is not what gambling has in common with Binary Options, but what Binary Options have in common with gambling.

Or rather, is binary options like gambling, how Binary Options, like any other speculative trading vehicle, can be used for gambling. If I have said it once, I have said it a hundred times, it all comes down to your approach. If you are randomly trading on super short time frames without using technical or fundamental analysis and making trades of variable size, is binary options like gambling you are most probably a gambler, or at least gambling, is binary options like gambling.

If you are making informed decisions based on sound analysis techniques and managing your losses then you just might be a market speculator. com Popular Reviews 24Option IQ Option Is binary options like gambling HighLow Ayrex eToro BDSwiss Binary.

com IG OptionRobot Bitcoin Code Tesler App Binary Robot Crypto Robot GreenFields Capital The Bitcoin Trader BinBot Pro The Crypto Genius. Trading, Gambling, Binary Options Tra-mbling? How Gambling Relates to Trading? How Is Binary Options Like Gambling Binary Options is like gambling in a couple of ways. All Rights Reserved. Home About Us Our Writers Disclaimer Contact Us. Please be noted that all information provided by ThatSucks. com are based on our experience and do not mean to offend or accuse any broker with illegal matters.

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Binary Options are Gambling Not Investment!

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Are Binary Options A Form Of Gambling? | Finance Magnates

Binary options are gambling much like other financial instruments, tangible or intangible. This is not a bad thing, people gamble their entire lives. What we learn as a result of survival is knowing what we are risking and for what result and on what odds, this is something you must do in personal finance as well if you want results  · Binary Options is like gambling in a couple of ways. It is, however, also a form of trading that can be used for speculating the markets, which is not gambling. Like gambling you are putting down your money on an event of chance. Like gambling you are doing this for the purpose of gaining a payout and like gambling you are not creating wealth, merely profiting from an outcome  · So, short answer to are binary options like gambling – yes, but they are not gambling! Although these websites are making huge businesses, and by searching through Google you would get around k hits with promotions that procure maximum profit in an hour, binary options are still more gambling than trading