Is Binary Trading gambling?
In the world of finance and trading, there’s always a risk that comes with every investment. A bad investment is not rewarded, but good investments are. Does this neccessarily mean that Binary Trading is in fact a form of gambling? Well, depending on how you look at it I guess you could say that it is. There are certainly a few similarities, but there are definitely a lot of differences as well.
The main thing that makes Binary Trading stand out from regular gambling is the amount of skill that is involved. Very few gambling activites can be as dependant on skill as binary trading. If you compare it to classic casino games it’s easy to see. In Roulette or Blackjack, for example, the player has no way of predicting the outcome of an event, it’s purely based on chance, which isn’t a safe way to make money at all. The risk involved in such activities is far greater than the risk involved in binary trading. The form of gambling that comes the closest to binary trading would probably be sports betting, as the basic concept is actually very much alike. Just like in sports betting, where the punter has to be well informed about what’s going on in the sports world in order to be succesful, an investor trading binary options needs to to know the market in order to make the right decisions.
If you take a person who knows absolutely nothing binary trading and give him a trading account at a broker then, sure, it’s definitely gambling, as the person won’t be able to predict whether a commoditywill go up or down in price. However, if you take a financial expert, binary trading is just business. For a person well educated and interested in the financial sector, binary trading is a rather certain way to make money. After all, many people today can actually make a pretty good living out of trading currencies or binary options, and it’s more common to make profit than to lose money. Now, compare that with normal gambling. How many people can make a living out of going to casinos and play blackjack? Well, unless you’re counting cards or cheat, the answer is no one! Casino games are designed to make you lose in the long run, so there’s just no way you’re ever going to support yourself and your family by simply playing casino games.
In order to get successful in binary trading, and make the money you dream of, you will have to put in the work, and that’s also one of the reasons to why binary trading can’t really pass as a form of gambling. Most forms of gambling are seen as recreational activities, whereas binary trading is usually seen as “work”. It helps if you already have an interest in finance, as your main advantage on the market will be your knowledge of the market. You need to know what sort of news events will affect the direction of the market price on a certain commodity and use it to your advantage. It’s the people that work the hardest that gets the real rewards, and if you’re not interested in learning, you will probably not last long in binary options trading. If you’re looking for something fun to spend an hour on here and there, binary trading might not be for you and you might be better off at an online casino. Don’t get us wrong, binary trading can be fun – a LOT of fun when your hard work is paying off – but it does require you to put in the effort.
So, to conclude, binary options trading is definitely not a form of gambling, not in the classic meaning of the word, anyway. Sure, there’s the risk of losing money involved just as in casino games, but the level of skill that the traders can use to their advantage simply makes it a game that rewards good players.