Nowadays, binary options brokers are popular due to their short investment offers and promises of high profit margin. These marketing tools attract types of people that are playing poker online, gambling at casinos or betting on sports. But binary options leave an impression of offering more than just a bet in hope for profit, they are perceived as real investing tools.
So What are Binary Options?
These options can be bought on different assets and more or less look like the real investment. People are severely generating from these “all or nothing options” with opportunities to earn between 60% and 450% per one trade with binary options. Most of the time, betting has two options it is either win or lose. Binary option market’s gain or lose depend on asset lasting in one of two possible situations. Also, in case ending price is the same as starting price investor is going to get his money back. Some traders are encouraged due to this all or none results and take risk by predicting trade scenarios. That is why in some ways, binary options and gambling are always associated in the minds of potential customers.The distinguishing factor between gambling and investing in case of binary options is the bet size. As gambling entirely depends on the luck or chance, while binary options involve analysis and market predictions in betting.
The value of these depends upon the financial assets for which is dispensed, there are many ways through which you can invest in binary option based on market analysis and complete research on the concerned assets. In this way, one can have substantial data to decide whether the particular binary option provide revenue or not thus making it different from betting or gambling. Betting deal the capability to enter into a bet without predicting the outcome of the event whereas binary option allow the investor to conduct proper research and analysis about the strength and weakness of the underlying asset and then allow to authorise control over its future outcome.
On the other hand the trouble with this digital option is that they turn their percentage rate so quickly that even the expert traders become unpredictable about the mechanism of its market. So you just have to mount an instant guess and a prolong research for this kind of prompt trading. Another shortcoming provides longer term contract with broker certainly of one year which means that you will not be able to buy or sell your shares as the market fluctuates.
Is Trading Binary Options Gambling?
It must be an agreed fact that binary options involves high risk and high return on financial instruments. But it is similar to other trading options such as future trading or vanilla option trading and thus should consider as a part trading investment. So, short answer to are binary options like gambling – yes, but they are not gambling!
Although these websites are making huge businesses, and by searching through Google you would get around 900k hits with promotions that procure maximum profit in an hour, binary options are still more gambling than trading. However, even gambling can be done professionally. Go only for trusted binary options brokers!