Binary options trading vs Gambling

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The answer is not clear cut. So the answer is not black and white. A hedge fund manager buying a large chunk of shares in a multinational corporation has an element of risk to it. Any form of financial disaster could impact that company. Binary options trading gambling online manager is hopefully aware of this, but is satisfied that the potential gains are worth the risk. That would strike me as a gamble. So if we have established that it is possible to gamble in traditional share trading, it is certainly possible in binary options.

But just like the hedge fund manager above, it is also possible to trade based on expected value. In my opinion, once a positive expected value has been established, the line has been crossed from gambling to investing. Firstly, there is nothing wrong with using binary options for a flutter, as long as you know that is why you are using them and are not gambling with money you cannot afford to lose.

That applies equally if you are using them to trade really! Binary options offer a quick, exciting way to speculate on the markets and are probably more entertaining than some other forms of betting, so why not? Some of the platforms are designed with gambling absolutely at the forefront of the design — flashing lights, pulsing price graphs and competitions. People who use binaries for a bit of fun are well catered for.

If however, you want to avoid using them to gamble, there are a couple of checks you can make, based on your own trading:. So whether binary options are gambling or not depends on the trader. They can be used to gamble, but they can also be used to invest. It all comes down to what binary options trading gambling online going on between the ears of the person placing the trade.

Is Binary options trading gambling online Simply Gambling? Is All Investing Gambling? Are binary options gambling?

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