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There are many who consider binary options a form of gambling because of the unpredictability of binary options. But they somehow have an aura of being more respectable because they represent themselves as offering a form of investing. However every type of investment has a degree of unpredictability and an inherent risk.

Even if you diversify your investment portfolio you can not eliminate the inherent risk of the market. Are they gambling as well? What is the difference between gambling differences between binary options and gambling investment? What risk is acceptable? Differences between binary options and gambling predictable a form of investment needs to be to be considered investment and not gambling? Some argue, that the main difference between gambling and investment is that you are guaranteed to lose long-term while gambling and guaranteed to gain some money investing.

This logic is wrong on many counts. Every type of investment has risk, therefore it is not guaranteed that you will gain anything long-term. Not to mention you just differences between binary options and gambling to think of the recent recession to know how unpredictable the markets are and how quickly you can lose everything. As for gambling there is no house edge in all of the games i. Also there are the advantage gambling methods, which means if you are patient and have what it takes you can eliminate the house edge entirely and guaranteed to win long-term just think of card counting, the MIT blackjack team.

Are binary options a form of gambling or investment? The truth is none knows for sure. This is an open question and you are free to decide for yourself. Even the government is unsure what to make of binary options: Are there working, reliable binary option strategies to make money trading binary options?

You probably have already seen these ads. You can be sure they want your money if they throw around words like that.

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Gambling thus requires three elements be present: By the above definition, trading in binary options does indeed fall into the gambling category but so does every other form of trading such as stock trading or currency trading. In fact, so many things that we do in life can be considered gambling. Upon closer inspection of this question, I suspect what most people are really asking is whether binary options trading is like casino gambling in which the odds are already fixed against the player.

I believe many people have this notion because of the many immediate similarities between binary options and casino games like blackjack in which there are only two possible outcomes:.

When comparing these two activities, what most people do not take into account is that for casino games such as roulette or blackjack, the outcome of each game is entirely random and is not dependent on any external factor. However, in binary trading, the outcome is greatly influenced by real world events. People who did their homework, studied the rise in nationalism across the European Union and predicted that BRExit would happen had a much higher chance of correctly 'guessing' which way the price of the British pound will go after the BRExit referendum vote.

However, in the case of casino gaming, there is simply no way the casino game player will ever be able to gain an edge in guessing the outcome of any individual game no matter how much effort he is willing to put in. Hence, in binary options trading, the true odds you will get is highly dependent upon how much information you have in relation to the bet you are making.

Conversely, for pure casino gambling, the odds are already fixed against the player and the house ensured that the player can do nothing to increase his odds of winning.

The casino will take every measure to ensure this and even suspected card counting Blackjack players are quickly banned from their premises. Many of the most popular financial instruments such as currency pairs, equities and commodities are available to trade using binary options. Is binary option a legitimate financial instrument or just another form of gambling Unlike humans, robots have no emotion and do not need to rest, so they can make a lot more trades than humanly possible, combined with perfect consistency Learn how you can get scammed when trading binary options if you are not careful With so many scam brokers out there, before you learn how to trade, one must know how to separate the wheat from the chaff and find a trustworthy binary options brokerage How often does my trades need to be successful in order to be consistently profitable in the long run when trading binary options?

Stocks, futures and binary options trading discussed on this website can be considered High-Risk Trading Operations and their execution can be very risky and may result in significant losses or even in a total loss of all funds on your account.

You should not risk more than you afford to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience.

Information on this website is provided strictly for informational and educational purposes only and is not intended as a trading recommendation service. What are Binary Options? Is Binary Options Trading a Scam? How to Select a Binary Options Broker?

The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.