Templates by BIGtheme NET

Binary Options: Investing or Gambling?

In the eyes of an inexperienced neophyte, especially at first glance, trading in binary options might look like a gambling, rather than a form of investment itself.

But we are far from being able to define it a game, because they are financial instruments and not entertainment forms, and because while in the gambling luck is the prevailing element, in options trading the ability of the trader comes first.

Some aspects may still continue to think about a bet, such as options with very short term, where the necessary skills of good forecaster joins definitely a good dose of luck.
However, still an investment, so the logic of gambling is certainly to be excluded, otherwise it would explain why are always the best traders and not just the lucky ones who close their operations into profit.

Consequently, it isn’t correct to talk about winning or losing, the terms used in the game, but operation in profit or loss. Don’t mess with the options, you don’t have to guess, but looking at the graphs, evaluating trends, listening to signals from the market and from other sources, we study the evolution of prices.

Another important difference is the possibility, not always available, to resell the option to the broker, sometimes, if the trader wanted to close the position before the expiration date, could sell the instrument to the same broker, and after a quick evaluation would offer a purchase price freely acceptable or rejectable.

And then, you will find that there is some remote common element, on the other hand, even when you invest in stocks, commonly called play the stock market. In reality we all know that the stock market is not a game, but a place of open trade for those who have money to invest. However, the risk to lose your money recalls the gamble, this is understandable, but woe to think of being able to approach this world as if it were in bets taken.

About Simona

Leave a Reply

Your email address will not be published. Required fields are marked *