Depending on whom you ask, you may be told that trading binary options is either nothing like gambling or is pretty much exactly the same thing. Some swear blind that the two can and should be categorised under entirely the same header, while others will tell you that this is nothing short of dangerous misinformation.
But when looking at things objectively, what’s the truth? Is binary options trading similar to gambling or not?
Well, just as is the case with so many things, the truth can be found somewhere down the middle. Roughly translated, while binary options trading cannot be looked at as a form of gambling in the same way as something like roulette, it does nonetheless bear certain similarities to other types of gambling. In terms of whether or not this is a good or bad thing comes entirely down to personal preference. But in any case, it is crucial to understand binary trading as comprehensively as possible, before deciding whether or not to get started.
So rather than simply tell you it’s one way or the other, we thought we’d provide a more balanced overview of why binary trading is and isn’t like gambling.
Why Binary Trading Isn’t Like Gambling
When boiled down to its fundamentals, binary options trading is basically a simplified version of traditional trading and investments. One of the most appealing and important things about binary options trading is the way in which it opens up an entire world of extraordinary trading opportunities to anyone with a compatible device and Internet connection. Suffice to say, to compare trading and investments at all levels to gambling in the traditional sense would seem to be nonsensical. Quite to the contrary, trading is looked at as something of a profession, where those who know what they are doing can potentially earn enormous sums of money.
When it comes to binary options trading – like all other types of trading across the board – the difference lies in the fact that you have the power to influence what happens. You may not have any control over the result of each specific trade, but you do nonetheless have the ability to carry out as much research and analysis as necessary to make educated and informed moves. For example, by taking into account current market conditions and being fully aware of an event set to take place tomorrow, you may be able to say with 90% confidence that the price of gold will increase within 24 hours. You may not be able to guarantee this 100%, but the odds are certainly better than those of putting all your money on Red and praying for a successful spin.
With binary options, the more you know about the assets and markets you choose to deal with, the better your chances of coming away with a profit. It is certainly not an easy activity to make money from…at least not in generous quantities…but it is nonetheless an activity where knowledge is power. Or to put it another way, tipping the odds in your favour is something you always have the power to do.
Why Binary Trading Is Like Gambling
Which is precisely where the first and most important point comes into consideration when it comes to why binary options trading is like gambling. The simple fact of the matter is that regardless of how much research you carry out and how certain you are of any given outcome, it is fundamentally impossible to remove all attached risk with any trade whatsoever. Success rates of 100% are categorically impossible and every trader across the board is guaranteed to incur losses at some point. Which in turn means that with every trade entered into, you are in fact gambling to a certain extent.
The circumstances in which binary options trading becomes even more like gambling are those where the individual in question chooses not to carry out the necessary research and analysis. Instead, they simply work with the fact that as there can only ever be one of two possible outcomes with binary trading, they have something of a 50/50 chance of selecting the correct option. Which in turn makes binary options trading somewhat similar in terms of gambling to roulette, assuming that in the case of the latter you choose any of the available options with a similar 50/50 outcome. The only difference with binary options being that there is no chance of a ‘00’ result, which in the case of roulette means that the actual odds are slightly below 50/50.
When approached in this manner, binary options trading is indeed a form of gambling that can be tried out with absolutely no experience, no research and no real effort whatsoever. But at the same time, this really isn’t what binary options trading is all about. Instead, it’s about taking what may at its most basic level come across as a form of gambling and working hard to give yourself the best possible odds of coming away successful. But given the fact that there will always be a certain amount of risk involved, you could say that binary options trading in all its forms does bear similarities to gambling.
Why Binary Trading Is Worth Checking Out
As far as Casino Papa is concerned, binary options trading is only worth getting into under one condition. That being, that you are willing to put in the necessary effort to learn the ropes and make educated decisions, rather than simply relying on guesswork.
If you would prefer to leave things in the lap of the gods and are happy with odds that aren’t exactly stacked in your favour, you will probably get more enjoyment out of standard casino gaming. Nevertheless, if you are happy to do your homework and like the idea of odds that work for you, rather than against you, check out our binary options broker reviews and maybe give it a try today.
You might also find the following articles interesting:
- Choosing a Safe and Savvy Binary Options Broker
- Elijah Oyefeso – The Truth About the Self-Made Trading Guru
- Essential Tips for Binary Options Newbies