Is Binary Options Trading Like Gambling?
A question that I get asked a lot is whether binary options trading considers to be gambling or not. Even though I don’t have any problem with gambling, my answer is very clear. Trading binary options is nothing like gambling and on this article I’ll explain why. To gamble, by definition is to play a game when your chances are known in advance and your odds are lower than 50% no matter what. For instance, if you play roulette and you bet on the black color, there will be always greater chance for the red color and vice versa. The house will always have the basic advantage.
In online investing the situation is a bit different. In binary options trading, the house is the broker and he also has some kind of advantage as there’s a commission you pay for each transaction you make on any currency pair. So when you initiate your trading position you can say that you start slightly below the zero level. It means that if theoretically you will not win or loss from that action, you will still lose what you paid as a fee. Even if the probabilities for a certain cross, lets say the EUR/USD to go up or down are break even, you still have less than 50 percent expectancy due to the commission. According to this, it sounds like binary options trading is gambling. Is that so? NO!
In oppose to the roulette, in currencies day trading you can use different elements to turn the odds to your favor. There are so many factors that affect the overall results. If you use wisely the different analysis and trading tools you can get a serious edge and turn the odds for winning trades way above the mentioned 50% point. Following are some of the major trading tools you can use that differentiate binary options trading from gambling:
1. Technical Analysis – When you use binary options trading platform you have the valuable technical analysis approach. What it means in a nutshell, is that you can use advanced charts with sophisticated indicators. When you analyze past data of a particular asset you’ll have a surprise when realizing how much data you can take out of it. By observing and analyze past data you get great insights as for future potential movements.
You can test history results, see how a currency behave any time something particular happens in the market. You can back test your trading strategy and use great technical indicators such as moving average, RSI and many more. All of these, if used properly, helps you in getting hedge in binary options trading. So take to time to learn how to use it wisely. By the way, this is definitely not something you can do in gambling.
2. Fundamental Analysis – Another good tool you can use in binary options trading is the fundamental analysis. There are many influences on the currency market. Many of them relate to economic events and changes in the financial environment. Once you learn how each scenario usually affect the binary options market you can use it to your benefit. By the way, that’s also about unexpected events which are not related to the economy. For example, an earth quake in Africa may cause a specific behavior on the European currencies, which might cause, let’s say the EUR/GBP act in a certain way.
3. Auto trader and signal services – Today there are many online trading services offered, especially in the binary options market. Some of them were created by real professional traders who use their skills to develop winning binary trading systems. You should be careful and chose your chosen product selectively.
But if you pick right, you have the chance to get a serious money making tools which was designed to beat the market. Check out our review to see which software you should avoid using and which ones are of the best quality. On the contrary, there are some automatic gambling systems and software. But eventually all they do is trying to make you lose less and more slowly.
There are also other tools you can use in binary options trading but those 3 are the main ones to mention here. Another very important thing to consider when approaching binary options trading is that you must have a great broker and a good trading platform.
If you did everything right, or you choose a winning software you should earn a lot of money. But if you’ll do it not with a legit trustworthy broker you can still lose money. It will be simply like gambling. In order to express your trading skills and quality tools, you need a decent platform. You need a broker that will allow you to trade smoothly without any interruptions or manipulations. Then, you will win or lose solely according to your skills and performance. This is exactly what you should strive for. Check out Brokers reviews to find a good binary options broker to work it. Don’t gamble on your broker!
binary options trading is nothing like gambling in oppose to what many people think. If you choose your trading tools, strategies and brokers properly you are not gambling. You can easily reach to much higher than 50% of winning rates. Obviously there is no guarantee that you always win and there are always risks. But the risk is calculated and this is a totally different category than gambling.
Conclusion 1 – Get a broker can rely on
We already agreed that in binary options trading you need one of the best brokers to maximize your performance. You might have proven winning method that you’d like to apply to generate consistent profits. You might be also a newbie who wish to try and test what you just learned. It doesn’t matter what type of trader you are you need a legit broker. For that purpose I’d like to suggest that you open an account with IQ Options. This is one of my preferable broker and there are few reasons for that. They are full regulation, and you can trust them. In addition, their platform offers all the features you might need. From free demo account, through 10$ practice accounts, to creating automation with the most advanced set ups. To open an account with them use: IQ Options Free Account
Conclusion 2 – Look for a winning software
Today’s high technology affect also binary options trading. You can find numerous new services over the web, and some of them are scams. However, some of them have huge value, and if you pick the right one you might save yourself a lot of time and earn a lot of money in the easiest way. Go to our site to check our reviews. The latest binary options trading product which is currently the most profitable is the Lexington Code. You definitely want to check it out as so far it’s proven to be unbelievably profitable for many users around the world. To visit the site and open an account go to Lexington Code System.