This form of speculation on the market takes the form of a fixed-odds bet on a future asset price. The bet may be that it is above or below a certain price at a specific time in the future when the bet expires, or a range of other specifications, e. the asset price has to be between two prices strikes at expiry. Although both mainstream futures and binary options have been around for centuries in one format or another, the recent explosion of interest in these instruments from the retail market has been nothing short of extraordinary with the IG Group being capitalized on the London Stock Exchange in excess of £1bn.

Spread betting led the charge but binary options have been peddling fast and, as can be observed from the following Google Trends graph, have comprehensively outstripped spread betting in Google searches.

Can this generation of interest continue one wonders? This is a good increase but not breathtaking bearing in mind the novelty of the instrument ; derivatives markets growth generally increases exponentially in its early stages so the same number next year is likely to be higher. The retail OTC binary options market appears to be going from strength to strength also. Yet what is likely to drive further interest and higher volumes of binary options trading is the increased sophistication of the products on offer.

Between these two extremities is a void that is likely to be closed by the more professional and sophisticated binary options on offer to the retail customer. As the competition between platforms hots up the returns on offer to the traders will become more competitive attracting the more discerning day trader to the party. The binary options market is no flash-in-the-pan, it is going from strength to strength with a big gap to fill between the recreational retail users and the most sophisticated financial market in existence, the interbank FX options market.

Exciting times lie ahead…. Show all posts. Write a comment abort. Save my name, email, and website in this browser for the next time I comment. How to trade Binary Options in Bangladesh- Guide. How to trade Binary Options in Yemen- Guide. Where to find the best information on how to use Binary Options?

Why you should not trust Binary Options account managers? How to trade Binary Options in Kazakhstan — Guide. We need your consent before you can continue on our website. com is not responsible for the content of external internet sites that link to this site or which are linked from it.

This material is not intended for viewers from EEA countries European Union. Binary options are not promoted or sold to retail EEA traders. com shall not be liable for any errors, omissions, or delays in the content, or for any actions taken in reliance thereon. The Options Guide. What are Binary Options? What Can I Trade Using Binary Options? Main Types of Binary Options How to Trade Binary Call Option How to Trade Binary Put Option.

High-Low Binary Options One-Touch Binary Options No-Touch Binary Options Double One-Touch Binary Options Double No-Touch Binary Options.

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General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds.

Casino gambling on the other hand, refers to a game of sorts in which various individuals place bets on the probability of an event occurring. For instance, in a racing match, patrons january be given the option of earning some money by placing bets on the probable winner.

In addition, the probability of different people winning is normally ranked and different returns assigned to each. Another major difference is the amount of risk that an individual undertakes in the two circumstances.

In casino gambling, the risk is undefined and open to control by factors outside the control of the player. However, in binary option trading the trader and the broker are usually in control of a larger number of the risk factors, which can be analyzed based on sound business models.

This allows the trader to control the varieties of outcomes that are possible during a trade. On the flip side, it is important to note that gambling does not only rely on luck, but also smart trading techniques, which january influence the outcome. Gambling, especially in casinos is normally designed to keep the patrons entertained and pull them in again and again.

Usually, casinos ensure that patrons keep winning in various amounts to keep them hooked.

Gambling thus requires three elements be present: consideration, chance and prize. 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. Upon closer inspection of this question, I suspect what most people are really asking is whether binary options trading is like casino gambling in which the odds are already fixed against the player. I believe many people have this notion because of the many immediate similarities between binary options and casino games like blackjack in which there are only two possible outcomes:.

When comparing these two activities, what most people do not take into account is that for casino games such as roulette or blackjack, the outcome of each game is entirely random and is not dependent on any external factor. However, in binary trading, the outcome is greatly influenced by real world events. For example, when the BRExit event happened on June 23 , the British pound fell sharply. People who did their homework, studied the rise in nationalism across the European Union and predicted that BRExit would happen had a much higher chance of correctly 'guessing' which way the price of the British pound will go after the BRExit referendum vote.

However, in the case of casino gaming, there is simply no way the casino game player will ever be able to gain an edge in guessing the outcome of any individual game no matter how much effort he is willing to put in. Hence, in binary options trading, the true odds you will get is highly dependent upon how much information you have in relation to the bet you are making.

Conversely, for pure casino gambling, the odds are already fixed against the player and the house ensured that the player can do nothing to increase his odds of winning. The casino will take every measure to ensure this and even suspected card counting Blackjack players are quickly banned from their premises.

Many of the most popular financial instruments such as currency pairs, equities and commodities are available to trade using binary options. Is binary option a legitimate financial instrument or just another form of gambling Unlike humans, robots have no emotion and do not need to rest, so they can make a lot more trades than humanly possible, combined with perfect consistency Learn how you can get scammed when trading binary options if you are not careful With so many scam brokers out there, before you learn how to trade, one must know how to separate the wheat from the chaff and find a trustworthy binary options brokerage How often does my trades need to be successful in order to be consistently profitable in the long run when trading binary options?

Risk Warning: Stocks, futures and binary options trading discussed on this website can be considered High-Risk Trading Operations and their execution can be very risky and may result in significant losses or even in a total loss of all funds on your account. You should not risk more than you afford to lose.

Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Information on this website is provided strictly for informational and educational purposes only and is not intended as a trading recommendation service. com shall not be liable for any errors, omissions, or delays in the content, or for any actions taken in reliance thereon.

The Options Guide. What are Binary Options? What Can I Trade Using Binary Options? Main Types of Binary Options How to Trade Binary Call Option How to Trade Binary Put Option. High-Low Binary Options One-Touch Binary Options No-Touch Binary Options Double One-Touch Binary Options Double No-Touch Binary Options.

Is Binary Options Trading a Scam? How to Select a Binary Options Broker? Binary Options: Trading or Gambling? Home About Us Terms of Use Disclaimer Privacy Policy Sitemap Copyright com - All Rights Reserved. General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.

Best binary broker:. Many professional traders emphatically stress that, in reality, this is definitely not the case. This is actually legal. This material is not intended for viewers from EEA countries European Union. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments. March, Ok Privacy policy.

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