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  1. #1
    Rookie Member

    Investing in Binary Options !!!

    Iím looking for new investment schemes to augment my income. Iím interest in forex trading and Iíve come across binary options. Iíve been reading about it for quite some time now. Some online articles say that trading binary options is gambling. What can you say about it? Is this true?

  2. #2
    Moderator Kolyo's Avatar
    Quote Originally Posted by Denis Hodzic View Post
    Iím looking for new investment schemes to augment my income. Iím interest in forex trading and Iíve come across binary options. Iíve been reading about it for quite some time now. Some online articles say that trading binary options is gambling. What can you say about it? Is this true?
    Hi Denis,

    Welcome to CommuniTraders!

    You will find the answer of your question after reading the reviews in our Binary Options School Section. It is not that simple to give you the answer in few words. It mostly depend on your attitude toward trading. If you are approaching it like gambling it will be gambling, if you are approaching it like business venture it will be no riskier than your ordinary business ventures. I hope you will find interesting the discussions in our binary trading Community and will participate here.

    Best regards,
    Kolyo
    CommuniTraders Team

  3. #3
    Administrator Martin Kay's Avatar
    Quote Originally Posted by Denis Hodzic View Post
    Some online articles say that trading binary options is gambling. What can you say about it? Is this true?
    Just out of curiosity, can you refer me to these articles?

  4. #4
    Specialist Member TAllen1429's Avatar
    Hi, for what it is worth, here is my present understanding of the status of binary options.

    One of the main stipulations that was used to develop binary options initially was simplicity so that they could be traded by as wide a range of investors as possible.

    However, this requirement lead to Binary options being classified initially as a form of gambling by some quarters. The primary reason is that they appear in operation to be similar to a casino game, such as roulette.

    Instead of betting on black and red, you now predict if price will rise of fall. Also, in the early days this investment sector acquire the reputation of being the 'Wild West' of financial speculation with unregulated brokers springing up all over thee place.

    However, you cannot adopt a gambling mentality when you trade Binary options. This is because you need a win-to-loss ratio of between 55% and 60% just to breakeven. This is because payouts when in-the-money range between 60% to 85% while refunds when 'out-of-the-money' are between 15% and 0%. As such, a gambling approach would just lead to extensive losses over the long term.

    In addition, binary options are time dependent events. For example, if the price of an asset is refreshed every 10 seconds, then in just 1 minute the variations in movement will be 2 to be power of 6 = 64 different patterns. Consequently, you need to adopt a professional approach to stand any chance of trading binary options successfully.

    Finally, serious efforts are being undertaken at present by most of the major countries in the world to fully regulate binary options so that they will be classified as a true financial instrument in the imminent future.

  5. #5
    Rookie Member
    Guys! Take a look at this. Found this site nrgbinary.com on the internet. It offers binary options trading. Maybe instead of asking if it’s gambling… maybe you may want to try it first so that you’ll know for yourself if it’s gambling or investing. Its list of instruments is quite impressive. You may want to check it out.

  6. #6
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Kolyo View Post
    If you are approaching it like gambling it will be gambling,
    That's hitting the nail on the head

  7. #7
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Sarah View Post
    Guys! Take a look at this. Found this site http://www.nrgbinary.com on the internet. It offers binary options trading. Maybe instead of asking if it’s gambling… maybe you may want to try it first so that you’ll know for yourself if it’s gambling or investing. Its list of instruments is quite impressive. You may want to check it out.
    U advertising???

  8. #8
    Master Member Bogdan G's Avatar
    More insights into what trading is, gambling or investing...

    http://www.youtube.com/watch?v=4y6qD_2SQrs

  9. #9
    Rookie Member
    Iíd say, you can fall into a gambling trap if youíre not careful. Trading binary options isnít supposed to be based on pure luck. However, if you employ bad practices in your trades then it isnít trading anymore. It becomes gambling.
    There are some websites which offer trading run bets. One of the popular run bets is doubling the investment amount when the trader makes a correct prediction s to the outcome of the market after a certain time condition has been met. Another run bet promises a payout which is 10 times the capital amount if a particular digit of the price of the foreign currency pair falls between 0 and 9 after a certain time period. Another one also ensures a 10% payout for a correct prediction of the last digit of the foreign currency pair price after the end of predetermined time period. If the odds are so much against the trade and he still pursues that run bet then it can be considered gambling.
    You can actually veer away from the gambling element of trading binary options. You have to be choosy of your binary options contracts. Contracts which are speculative in nature and runs on very short expiry are basically gambling. This means, run bets are a form of gambling. Secondly, when you agree on a binary options contract, you have to ensure that you analyze it first using the right tools. When you perform serious analysis prior to trading binary options, you ensure that your money doesnít go down the drain quickly.

  10. #10
    Rookie Member
    My fifty cents – I don’t think that we have to consider binary options as ordinary gambling, because of the simple reason, all gambling games have some kind of random distribution of the odds. In trading the odds are not random; there are many market inefficiencies and big advantages for the traders, if they are trained to spot them. It is proven by many successful traders that it is really possible to steadily exploit the market inefficiencies and to make money out of it. That’s why I think binary options are very close to the ordinary financial transaction business and away from the world of gambling. Of course if you want to trade by pure luck, without learning how to read the markets it will be pure gambling, nothing else

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