Binary Options: Trading or Gambling?

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The answer is not clear cut. So the answer is not black and white. A hedge fund manager buying a large chunk of shares in a multinational corporation has an element of risk to it. Any form of financial disaster could impact that company. The manager is hopefully aware of this, but is satisfied that the potential gains are worth the risk. That would strike me as a gamble. So if we have established that it is possible to gamble in traditional share trading, it is certainly possible in binary options.

But just like the hedge fund manager above, it is also possible to trade based on expected value. In my opinion, once a positive expected value has been established, the line has been crossed from gambling to investing. Firstly, there is nothing wrong with using binary options for a flutter, as long as you know that is why you are using them and are not gambling with money you cannot afford to lose.

That applies equally if you are using them to trade really! Binary options where are you headed trading or gambling options offer a quick, exciting way to speculate on the markets and are probably more entertaining than some other forms of betting, so why not?

Some of the platforms are designed with gambling absolutely at the forefront of the design — flashing lights, pulsing price graphs and competitions.

People who use binaries for a bit of fun are well catered for. If however, you want to avoid using them to gamble, there are a couple of checks you can make, based on your own trading:. So whether binary options are binary options where are you headed trading or gambling or not depends on the trader.

They can be used to gamble, but they can also be used to invest. It all comes down to what is going on between the ears of the person placing the trade. Is This Simply Gambling? Is All Investing Gambling? Are binary options gambling?

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Since trading is a business of creating demands and supplying according to the demand, the prices will go up and down according to the intensity of demand and supply mechanism. So if you think you can make some good analysis of price while considering these two factors, you will buy it or eventually sell it and if all your predictions goes well you will make money or vice versa.

However, if you treat it like gambling then you may not sustain in the market for a long time as luck never remains the same. Sun Apr 8 Tokyo: March in Beginners Questions. I was just looking at binary trading after seeing some flashy ads about it although I could see right through the b.

I looked into the subject more anyway and saw many people who seemed legit saying you can make some money doing binary trading online IF you work at it and understand trading trends etc. Even then you will lose money at times but your chances are higher of winning with some knowledge.

Many others say these binary trading sites also have replaced the poker online gambling sites and that binary trading is not trading at all and you are doing nothing more than placing bets. From someone here who is maybe experienced with it all If I was to commit some work towards it and be able to make a few dollars a week with it I would be happy. I really don't believe all these "make 10, dollars within a day!

Here you go http: March edited March For most starting out they have no knowledge and experience so yes for them it is nothing more then gambling. Truth is its a job and takes a good deal of experience to do profitably day in and day out. Binary Options is like most other things in life; you can approach it like if it was gambling and waste your money if you have too much of it or you are too lazy to learn and become a trader. Those binary options ads you mentioned, they are obviously exaggerated, but then again; which ads are not exaggerated?

Glad you don't believe them I just don't know why, when it comes to BO, some people suddenly think all ads should tell you the entire truth. I guess the promises of making millions overnight makes people stop using their brains lol. Like, Redbull does not make you fly, as far as I know. But you can't gain knowledge overnight.

Start learning and don't focus on making a few bucks per week. Consider the money the prize for making good trades. You could say so - if you are a beginner. But guys with experience would definitely say otherwise. It is science for them.

Binary option not gambling we can predict the price if we used correct indicator that can help us trade on the right time. The problem that make us loose we trade too greedy and continues trading when we loose.

If we trade with patience and control emotion I confince we can make profit on binary option. Anyone who considers the binary options as a casino game , sooner or later fail. It is not necessary to believe questionable statements to this effect. As trading in the Forex market , working with binary options involves serious training , and self-control. In my trading I use technical analysis for reduce the risk.

I think it's all about controlling your emotions and making educated guesses. Forex trading is perceived as gambling by many people out there- doesn't mean it is. I you compare it with gambling, I think it's more a skill game. As a beginner without the necessary skills, like me, you will probably lose your money. So I have decided to read as much as I can, before I'll invest real money.

Hope it's the best way. Well, I wouldn't call it gambling You have to have knowledge so that you could do it and earn money. Yes, it can be really risky but I, for example, play really safe because with more knowledge that I get, the more I know how to invest. So no, I definitely wouldn't call it gambling, just investing based on the amount of the knowledge that you have! I completely agree I love the brokers I found here! Binary option is small industry on the internet and is not safe to put money in binary options company because we dnt know what happened, after 2 or 3 year or may be 5 year to build your account..

My best advise all the trader dnt use a broker from outside of your country. For example Fxcm come from united state if the office of this Fxcm have an office in your country then run. Choose a broker from your country.. Yes, and stick with regulated brokers. Best Binary Options Brokers. It's true that regulated brokers are the best way to go but 2 things, regulated doesn't make them a good broker and non-regulated brokers can also be good Good to choose a Right broker and full regulation from outside country July edited July Is binary trading just gambling?

Yes , is Gambling.. If you lost 3 or 4 trade you loose more than you win. Mostly binary option industry are regulate by Cysec. But trading is a skill and like any sport business or even picking up women, not all are unskilled gamblers some actually might be very skilled lol Binary options is risky that's a fact and to some extent it feels like gambling but it isn't.

August edited August Basically every trading instrument can become gambling, even a real estate agent can gamble. Binary option trading involves a probability factor, yes, but so does everything in life. Thing is, there is a huge difference between pure gambling and trading. Let's consider one of the most stupid things in gambling, people who actually think that statistics actually apply to a lottery.

They work with hot numbers and they really think that choosing hot numbers has to do with increasing changes. That is so wrong. Why, because the change of actually drawing that number the probability factor is done with permutables. I don't care if a hot number is drawn times in a consecutive row, it really doesn't mean that the next draw the change is higher of drawing that number. There is no cause and effect for that matter.

The probability is pure the outcome of a mathematical equation. Now consider a sociology research. Let's say they find that poor neighborhoods have a higher crime percentage then rich neighborhoods. There is a cause and effect. If you are poor, have nothing to eat, you might end up stealing food, right?

So there is a cause nothing to eat and an effect person turns to crime. Of Course that doesn't mean that person has to be involved with criminal activity, but the change is higher.

And the outcome of the probability factor is pure statistical. Still you can end up gambling, by not looking at the markets, ignoring fundamental and technical analysis. But that doesn't make binary trading gambling, it only says that you are gambling! Basically, there is no difference with a car trader that doesn't look at the technical state of the csr, the consumer need for the car and just wants to make profit, he's gambling.

But car dealers seldom get the tag "gambling". There is a lot of gambling in binary options, but it's your personal choice. If you believe in "get rich quick" you might end up as a pure gambler. Maybe it works for you, but statistics have proven those people on the whole make other people rich instead of themselves. To avoid gambling, lower your expectations, learn learn learn, and be realistic! In order to make money. Remember - if you loose 3 or 4 trade some time 5 Trade in a row..

Question - Why binary options broker dnt have an international office and All company binary option are private company?

Back in business school, my finance processors taught us that option trading was a sucker's game, a "zero sum" game, in which for every winner, there's a loser. That sounds very much like gambling, to me. This is one of the reasons why I always considered any kind of derivatives trading to be pure gambling. However, if I really think about this, I'm not so sure that trading binary options is too much different from "investing" in the stock market.

The stock is already selling at a higher price than what's supported by it's underlying assets, so you're gambling that the trend will move in your favor. This is my impression, but please note that I've still yet to make my first dollar trading, so take what I'm saying with a grain of salt.

The way I see it, if it's indeed true that for every winning trade there's a loser, then this means there's actually a lot of opportunity to be had! I see a lot of opportunity in binary options, but for most people, it's going to be a losing proposition.

That's not bad news, as far as I'm concerned.