No, binary options have nothing to do with gambling. However, the question subsists, is binary options gambling? Is it wrong that you start online trading? In this article you will finally have the answers to all these questions you have been asking yourselves for so long. Let’s dive into the subject!
Before answering this existential question, we will first have a look at what gambling really is. As per a dictionary definition, gambling refers to the action of compulsively risking money on uncertain events. Considered as a social evil, gambling is very harmful for people who practice this activity as it generates a spiral of financial troubles. In addition, in some countries gambling is considered as sport or a leisure. For example, Las Vegas is the place where all inveterate players meet. However, some are lucky enough and win million of dollar while others are left broke.
Traders should keep in mind that unlike binary options trading, gambling is an addiction that can lead to desperate and impulsive decision. The only common point binary options trading and gambling have is that there are always only two possible scenarios for both. That is, either traders will be in the money or in the worse case scenario they will be out the money. In order to better understand the difference between gambling and online trading, it is important for you to understand the origins of binary options.
The genesis of binary options
Made public in early 2008, binary options was proposed as an alternative for forex trading. Before this year, trading was strictly destined to tycoons of the society and powerful companies. Fortunately, binary options trading turned the tide by making this investment venture more accessible and more affordable. But what is online trading? In simple words it is defined as a prediction of the future price movement of an asset.
It is often said that binary options trading is very easy to understand and that anyone can start trading if he or she is willing to. This statement is true, understanding binary options trading is at the reach of everyone. However generating a huge amount of money in a short period of time with this investment venture is more complex. Trading is not a game, it is an art and like all masterpieces, it takes time. The amount of time it will take will solely depend on the efforts the traders will decide to put into learning and using the adequate strategies.
The winning formula of binary options
As it was mentioned above, if you want to be successful with binary options trading, you will first of all need to start by learning how it works. Many traders tend to be discouraged only by seeing this L word, but it is not as painful as it seems. Besides being easy, learning binary options can also be fun. All you need to understand is how the financial market works. This formula will help you see clearer:
Financial market events + the asset of your choice = the future price movement of the asset
That is, instead of making predictions out of luck, it is more than advised to rapidly check the news. If you don’t feel that you can go and look for pertinent news, this is not a problem. BinaryOnline produces Daily Market Updates on a daily basis. Therefore, all you have to do is to check the reports and see what is happening. You will notice that assets’ performance can be influenced by a lot of factors such as Quarterly earnings release, drastic climatic changes and many others. This is why it is of utmost importance to stay up to date with the markets.
Binary Options trading V/S Gambling
Now that you have perfectly made the difference between what is gambling and what binary options trading is, you will be able to better understand the differences which lies between these two. As stated at the beginning of this article, the only common factor that binary options trading and gambling is the two possible outcomes they offer. Nevertheless, except from this unique point, they have nothing in common. Below is the main differences between online trading and gambling:
Binary options trading is considered as an investment venture. That is, traders invest a certain amount of money and can trade this sum, they are not addicted and can stop trading when they want to. Whereas, gambling is considered as an illness which cannot be quit easily.
Binary options trading is done online within the comfort of your home. You can still have a balanced family life and trade, the two merge perfectly well as you don’t have to constantly monitor what is happening. That is, once your trade is placed, you can still go and make something else. On the other side, when a person gambles, he or she will have to go to casinos or to see a bookmaker to be able bet. Even when gamblers participate in online tournament, they are slaves of their computers or mobile phones as these games must be constantly monitored.
Binary options trading helped many traders to earn a second income and hence improve their lives. Even if it takes time, if you keep trying by using the appropriate techniques, binary options can be very profitable, Whereas, gambling is considered as destructive and cannot be considered as an additional income.
Binary Options trading 1 – Gambling 0
By now you should have understood that gambling is the antipode of binary options trading. Therefore, you don’t have to worry about starting a trading career as unlike for gambling trading is a healthy way of generating money. In addition, you will notice that at BinaryOnline, we have also made Islamic trading account available for all the traders of Muslim faith who want to start trading. If you have now made up your mind to start trading, please start in a safe and secure trading environment like the one we strived to put at your disposition here.