Is Binary Options Investing Or Just Gambling?

March 25, 2015 4:12 pm

Binary options are becoming a more and more popular investment vehicle every day; which has caused quite the debate lately. You see binary options are an all or nothing type of investment. One where the investor isn’t actually purchasing a share in a company, an ounce of gold, or a barrel of oil. As a matter of fact, nothing tangible is being purchased at all. . This has led to articles like this one on Forbes that propose the idea that binary options trading isn’t investing…it’s gambling. So, today, I thought it would be fun to talk about why I believe that binary options are far more than a gamble!

binary options

What’s the Gripe with Binary Options?

Binary options are simple to understand. Instead of purchasing a share in a stock, a precious metal, or any other asset, traders simply make predictions with regard to where the values of these assets will go. Because the market tends to be a volatile, unpredictable place, some experts say that the chances of coming out profitable are about the same as your chances of sitting at a poker table in a casino with $10,000 hoping for gains.

While I can understand the basic and unwarranted fear of investing in a prediction rather than a tangible portion of an asset, I don’t agree with, nor do I appreciate unfounded claims that I would be just as profitable sitting at a poker table as I would spending time on a binary option  platform. As an expert who not only understands, but teaches technical and fundamental analysis, I find it sickening that someone would essentially say that there is no art in my craft.

How Binary Options Are Far Different From Gambling

When gambling, you sit at a table with several other people as a dealer hands out cards. The cards are shuffled and you know absolutely nothing about what you’re going to get. Sure, you could study ratios, count cards, or do a number of other things that could make your chances slightly better; but you never know what’s actually going to happen until the money is out and the cards have been dealt.

If binary options are like sitting at a poker table, then the traders definitely have a deal with the dealer! The bottom line is that before I make a prediction in the binary options market, I do my research. So, if I make a prediction that the value of Apple stocks will rise by 2%, the chances of that prediction coming true are great! Why? Well, in the world of binary options, we have strategies that are designed to help make the path of any given asset clearer.

When you’re gambling, you never really know how many people will be at the table, who has what, and how the dealer shuffles. However, when trading binary options, there are key pieces of data that you can use to give you the upper hand! Think about it…we know that when economic conditions change, currencies move. We know that when earnings reports come out, the values of stocks move. We know that when economic conditions are poor, the value of gold will rise! The bottom line is that if you know your assets inside and out, and you use the right trading tools such as Economic calendars then you are in the driving seat – this can’t be said for poker or other forms of “real” gambling.

Final Thoughts:

I’m not sure why so many people would make unfounded claims like this about a great market. Maybe they’ve tried their hand and failed to do adequate research about the assets they traded; leading to losses. Maybe they’ve got nothing better to do. Nonetheless, I can tell you from experience, both at the casino and in the binary options trading market, binary options are truly an investment, not a gamble!

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