27/07/ · Why Binary Options is not Gambling In contrast, other revered analysts are prompt to dismiss this gambling verdict. They have adopted this viewpoint because you must specifically acquire a win-to-loss ratio between 55% and 60% in order to just breakeven over any specified period of time Binary Options - Trading or Gambling? | Finance Magnates Unlike gambling, in Binary Options you CAN predict with a high degree of confidence how an asset will move! While this does not mean that all the trades you place will win, there are ways you can turn most of your investments into winning ones. Gambling Trading; Money is wagered emotionally. Money is invested intelligently. Risk is maxed out. Risk is understood and accounted for
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 financial 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, 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, are binary options gambling, it is if you are just looking at the outcome of one individual trade in isolation, are binary options gambling.
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 are binary options gambling 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 are binary options gambling viable financial instrument. 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. 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 risked. The broker, are binary options gambling the other hand, will have a positive expectancy. The are binary options gambling way that you can make are binary options gambling over time when your reward is less than 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, are binary options gambling.
Truth About Binary Options \u0026 Those Who Promote It
, time: 5:58Binary Option Trading | Options Trading Online
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 27/07/ · Why Binary Options is not Gambling In contrast, other revered analysts are prompt to dismiss this gambling verdict. They have adopted this viewpoint because you must specifically acquire a win-to-loss ratio between 55% and 60% in order to just breakeven over any specified period of time 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
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