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LEARN MORE ABOUT BINARY OPTIONS
There is a lot of competition out there in regards to getting you to become a new client of each of the
Granted, poker players consider the game to be a game of skill. Regulators may differ in their opinion, considering it a gambling
Binary option trading is a type of financial trading module where there is a high payout percentage for the trades that do
If you are reading our site, you are most probably interested in trading binary options. Well, many people would agree that binary
We often talk about Forex trading while discussing binary options, because Forex and binary options are two closely related worlds. Another closely
Are binary options gambling?
Binary options: or ‘fixed-odds trading’ 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?
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 at a specified price (called the ‘strike price’) within a given timeframe. The time at which the contract expires is known as the ‘maturity date.’
In the case of a binary option, the pay-out is ‘all or nothing,’ 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, he/she ‘calls.’ If they believe the value will be lower than the strike price at the maturity date, they ‘put.’
Is it gambling?
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 ‘trading’ can only ever amount to a gut hunch.
So, I shouldn’t 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.
No such thing as strategy?
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.