This particular question is being both asked and mulled right at this moment by millions of online gaming and gambling fans all over the world. As time goes by, the line between binary options trading and conventional gambling is becoming increasingly blurred. At least, in terms of the way in which so many fans of the latter are getting involved in the former.
But at the same time, it’s crucially important to know what it is you’re signing up for, before getting started. Not only this, but there are some very important differences between binary options trading and gambling which also need to be fully taken into account and considered.
So for this piece, we thought we’d focus on the primary questions of interest to those who may be thinking of adding binary options trading to their online portfolio in the near future.
What Are Binary Options?
First and foremost, binary options represent very a very simple form of trading and investment, where there can only ever be one of two outcomes. Not only are binary options accessible to pretty much anyone with even very limited financial resources, but they are also much easier to understand in general. With binary options, you can trade anything from commodities like gold to international currencies to stocks in the world’s biggest companies and so much more besides. All you have to do is decide whether you think the value of the asset will increase or decrease by the time a pre-set deadline arrives.
How Does It Work?
In the simplest of terms, after signing up with a broker and depositing cash into your account, you need to choose the assets you want to work with. Of course, it makes sense to work with assets that are familiar to you, along with the ones you either have or intend to develop a decent amount of knowledge about.
For example, you could choose to work with gold and see what’s happening with gold prices and markets by reading relevant articles, journals, news updates and so on. If you think the price of gold will be higher in a few hours, you choose this option, place the money you wish to invest into the trade and choose when you’d like the deadline to be. If when the deadline arrives the price is higher, you win back your money plus a profit. If you are incorrect in your prediction, you lose the money you put on the line.
The profit you’ll take home if successful is fixed in terms of a percentage by the broker – usually around 80%. Which means that if you invested $100 and were correct, you’d get back your $100 plus an extra $80 profit. In terms of these deadlines – known as expiry times – you can choose anything from 30 seconds right up to several months, depending on your preferences. And depending on the broker you choose, you may be able to enter into trades from as little as $5, right up to $50,000 or more.
Is It the Same as Gambling?
In a word, no. Binary options trading is often thought of as gambling, given the way in which it is never possible to eliminate all risks of losses when trading. But what makes this activity different is the way in which knowledge is power. The more you know about any given asset or market and the more homework you’re willing to do, the more likely you are to make accurate predictions and earn money in return. Many people approach binary options in the same way as gambling and simply guess the outcome, though this is never considered an advisable approach.
Isn’t It For Experts Only?
The primary point of appeal when it comes to binary options is the way in which the system itself is so easy to understand and get to grips with that anyone can get started with ease. That being said, it’s all a case of building knowledge and understanding along the way, in order to stand the best possible chance of making money. Beginners with no prior knowledge cannot expect to enjoy the same kind of success as those who’ve dedicated their lives to trading for decades. But at the same time, you don’t have to have any experience or knowledge whatsoever to get started in the first place.
Are Binary Options Safe?
The safety of binary options depends on two important things – the broker you work with and the decisions you make. In terms of brokers, there are such huge differences between competing service providers when it comes to service quality, safety, customer service and so on. If you work with a reputable and reliable broker, you will find the whole process to be both safe and enjoyable. As for the decisions you make, it’s crucial to acknowledge the fact that in the world of binary options trading, you could technically put your entire life savings on the line with a 30-second trade and lose every penny before the minute’s out. Nobody can control the decisions you make other than yourself, so you need to ensure you have solid self-control and are capable of trading responsibly and sensibly.
How Should I Get Started?
If you like the idea of binary options trading and would like to give it a go, the first step is to find yourself a quality binary options broker. Read as many user reviews and independent expert recommendations as possible, in order to find a broker you can trust. Along with this, be sure to choose a broker that offers a 100% free demo account facility, which will give you the opportunity to find out how it all works without having to put a penny of real money on the line. And just as is the case with most types of online gambling, be extremely wary when it comes to introductory bonuses and special offers. In the vast majority of instances, they come across as far too good to be true…and are indeed exactly that!
You might also find the following articles interesting:
- Choosing a Safe and Savvy Binary Options Broker
- Essential Tips for Binary Options Newbies
- Getting it Right with Online Slots