Is binary option a gambling

Is binary option a gambling

/07/27 · Binary options were originally constructed to be as simple to understand and implement as possible. However, some of key attributes that they now exhibit as a result of these stipulations have caused numerous professional traders to categorize them as a type of gambling. Is this assessment valid? Source: Wikipedia. By the above definition, trading in binary options does indeed fall into the gambling category but so does every other form of trading such as stock trading or currency trading. In fact, so many things that we do in life can be considered gambling If you on the surface of trading using OTC (over-the-counter) binary options broker, this might be considered as gambling. On the other side is always a broker and the odds always in broker’s favor. This is because in this situation you can only a buyer here, buying a put or call option

Binary Options: Trading or Gambling?

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. 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.

Join the iFX EXPO Asia and discover your gateway to the Asian Markets. 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 is binary option a gambling instrument or not. It appears, based on a recent articlethat 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, is binary option a gambling, 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. 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. 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, is binary option a gambling, 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. 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 is binary option a gambling. 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 is binary option a gambling 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.

Professional Trader Reveals Truth About Binary Options

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Is Binary Trading Gambling? �� | is Binary Options Gambling?

As stated above in the article, to answer the question is binary options gambling or not, answer is definitely no. Both gaming and binary options industry imply that traders have to invest and risk their own funds. However, experience, motivation and strategy are /08/16 · Investors regard Binary options as gambling than a more “traditional” form of investment methods. In most cases, this myth spreads by many non-professional traders. They use gut instinct to win instead of following the direction of the market. For each wrong movement, novice traders end up losing their accounts. As a result, they blame the trading form other than their mistakes Source: Wikipedia. By the above definition, trading in binary options does indeed fall into the gambling category but so does every other form of trading such as stock trading or currency trading. In fact, so many things that we do in life can be considered gambling