Trading for every person
Binary option trading enables both beginner and experienced investors to make substantial returns from stock market trading. This form of investing grows in popularity by the day, as people from all around the world enjoy the benefits binary option trading has to offer.
Trading Binary Options, it sounds like a complicated product, however it is one of the most simple financial products at the moment. Especially for beginning traders it is a good product to get to get acquainted with trading financial instruments.
The basic idea behind Binary Options trading is quiet simple, a prediction is made on whether the price of an underlying asset (e.g., stock, commodity, index, currency) will finish above or below a “Strike Price” (The price that an underlying assets holds at the time one commences trading), when the trade expires.
As the name Binary suggests there are only two possible outcomes, a prediction is correct or incorrect.
When trading you choose to place either a “Call Option” or “Put Option” – A Call option predicts that an underlying asset will expire above the strike price, and a Put option predicts that it will expire below.
With Binary options, the return rate on an investment is fixed. Should a trade expire one dollar or two hundred dollars above or below the Strike Price (depending on the direction selected) the payoff will be the same, it is not proportional to the price at which the option expires.
Types of options Traded
An option can be based on any type of asset that is traded in the market, including indices (such as Dow Jones), currency pairs (ex: Euro vs. Dollar), futures (such as the FTSE100 futures) and commodities (such as silver and oil).
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 necessarily mean that Binary Trading is in fact a form of gambling?
No,The main thing that makes Binary Trading stand out from regular gambling is the amount of skill that is involved. Very few gambling activities can be as dependent on skill as binary trading.
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.
So, to conclude, binary options trading is definitely not a form of gambling. 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 instrument that rewards good traders.