A lot of people like to think that Binary Options is like gambling because you are basically investing your money on something that you simply cannot tell with a respectable degree of confidence. Since you are trying to predict whether the cost of an asset will appreciate or depreciate within a specific time period, you can either be right or wrong, regardless of what you may have learnt Binary Options is Haram if you are gambling. Although, you can find a way to have Halal Forex trading, in Binary Options it will not be very easy. This means that you have to avoid greed in every case and find a way to take decision based on logic, not based on speculation If you on the surface of trading using OTC (over-the-counter) binary options broker, this might be considered as gambling. On the other side is always a broker and the odds always in broker’s favor. This is because in this situation you can only a buyer here, buying a put or call option
Is Binary Options Gambling or trading? | Binary Options guide for traders
This guest article was written by Simon Klein who is a professional trader with over 10 years of trading experience. Simon has a passion for trading and binary option is gambling to train and coach others — whether a complete beginner or an experienced trader. He is also the founder of TradeSmart4x. Binary Options are a hot topic at the moment, binary option is gambling.
There is a lot of misinformation out there and conclusions binary option is gambling being drawn based on a lack of knowledge instead of being based on a deep understanding.
Join the iFX EXPO Asia and discover your gateway to the Asian Markets. This article will cover the interesting topic about how to classify whether the activity you are doing is considered trading or gambling and will uncover how to ascertain whether what you are trading is a financial instrument or not.
It appears, based on a recent articlethat regulators in different countries do not know whether to classify binary options as a financial instrument or gambling. This statement shows a shallow understanding of binary options as well as financial instruments, binary option is gambling.
There are a number of types of binary options binary option is gambling this article appears to imply that there is only one. For example, there are fully regulated binary options that trade on the NYSE and NADEX. There is also a Binary Options Exchange where you can be the writer and seller of binary options. Binary option is gambling, it is if you are just looking at the outcome of one individual trade in isolation.
If on the other hand, you are trading a system that has a positive expectancy then the outcome of a large enough number of trades is not uncertain anymore — you will make money! I would like to offer a different and novel approach to understanding the nature of trading and gambling.
To address the issue as to whether binary options are gambling or trading, you have systematically look at each category of binary options and decide whether you can develop a system that has a positive expectancy or not. If there does not exist a system of trading that has a positive expectancy, then you are gambling and what you are trading is not a financial instrument.
If on the other hand, binary option is gambling, you can develop a system of trading that has a positive expectancy, then you are trading and what you are trading is a viable financial instrument.
If you take a look, on the surface, at trading binary options through an OTC over-the-counter binary options broker, binary option is gambling, it would appear that you may be gambling.
This is because, on the other side of each of your trades, is the broker. This is because you can only be the buyer of the binary options. You can either buy a put or a call. If you win you will always profit less than what you risked.
The broker, on the other hand, will have a positive expectancy. The only way that you can make money over time when your reward is less than your risk is ONLY if you are able to develop a system of trading that increases the percentage of winning trades to a point at which you will have a positive expectancy.
Binary Options are Gambling Not Investment!
, time: 6:127 Binary Options – Is Trading Binary Options Gambling?
Binary Options is Haram if you are gambling. Although, you can find a way to have Halal Forex trading, in Binary Options it will not be very easy. This means that you have to avoid greed in every case and find a way to take decision based on logic, not based on speculation If you take a look, on the surface, at trading binary options through an OTC (over-the-counter) binary options broker, it would appear that you may be gambling. This is because, on the other side of each of your trades, is the broker. The odds are in the broker’s favor. This is because you can only be the buyer of the binary options A lot of people like to think that Binary Options is like gambling because you are basically investing your money on something that you simply cannot tell with a respectable degree of confidence. Since you are trying to predict whether the cost of an asset will appreciate or depreciate within a specific time period, you can either be right or wrong, regardless of what you may have learnt
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