Many people say that binary options are the financial instrument that joins the world of financial trading with the one of online gambling. Why is this? A gambler without any previous experience in online trading would surely say that it can’t be that similar, just as an experienced investor would never think of financial trading as anyway near gambling. But when you consider a few things it’s actually quite clear that the two of them are not so different after all.
First of all, there’s always a risk in involved in financial betting. There’s no way for us to predict future market changes with full certainty, no matter how sure they might seem .This risk is similar to that of online gambling, although financial trading offers traders to affect that risk by making wise choices. In other words, an inexperienced trader that is just playing around makes investments based on gut feel rather than precise analyses is pretty much taking a big gambler, whereas an experienced trader are much more likely to get his predictions right, and thus not taking as many risks as the inexperienced trader. Think of it as playing roulette. If you bet on black there is a chance that is roughly 50 percent that the ball will end up on a black slot and you will win double the amount of your initial bet. Well, in binary options trading you will bet on an asset to either go up or down within a certain time frame. Now, if you have no idea of what you’re doing, and you’re not analyzing the situation properly, you have two options to choose from. This will also give you a 50% chance of winning. There is a spanish trading site called opcionesbinarias.pm which has some interesting information on the similarities between binary trading and gambling.
Another thing that makes binary options trading similar to gambling is the fact that it is fast paced. Many people that are not involved in trading assume that all types of trading is a long term process. They think of stock investors that don’t get paid off from their investment until years afterwards, but in binary options trading it’s different. Here you will bet on a stock (for example) to go up or down within a specified time frame, and this timeframe can be surprisingly low. It often ranges between 15-30 minutes, meaning that you can double your capital several times in an hour if you know what you are doing. There are even websites offering shorter options, as short as one minute. This allows traders to enjoy the same adrenaline rushes that they can do playing a slot machines in a casino, and is one of the main reasons to why people think of it as something similar to gambling. To find a whole bunch of good binary trading websites, click here to visit binaryoptions.pm, which is one of my favorite trading portals.