If you’re into betting or gambling of any kind, chances are you’ve heard of binary options. Over the past couple of years, binary trading came out of nowhere to become a pretty big deal on a global basis. Hundreds of thousands of people who probably would never have considered getting into trading having already signed up and joined the party.
The question being – what’s the big deal? Or more importantly – should you get involved personally?
Given that there is such a fine line between binary trading and traditional gambling, it has a habit of dividing public opinion right down the middle. Nevertheless, there’s really only one person who can decide whether or not binary trading is for you – which is, of course, you!
So for those looking to learn a little more about this apparent trading revolution, we thought we’d cover a few of the essential basics in this post.
What Is Binary Trading?
Addressing the most obvious question first of all, what exactly is binary trading? In the simplest of terms, binary options give those taking part the opportunity to ‘bet’ money on the outcome of a trade. For example, if you believe that the value of gold will increase by 4pm today, you can place any amount of money you wish on this eventuality. If it turns out that you’re correct, you take home a profit plus your original investment. If it turns out that you’re incorrect, you lose everything.
With binary trading, you can bet on everything from international currency values to the price of commodities like gold and oil or even the value of major companies and global indices. In all instances however, the principle remains the same. You choose whether things will be higher or lower at the end of a specific period of time, which in turn determines whether or not you are successful.
It is the fact that there can only be two possible outcomes that gave ‘binary’ trading its name. Regardless of the size or nature of the trade in question, it can only ever go one of two ways.
Why Has Binary Become So Popular?
The simple reason why binary has become so popular is the fact that it is so simple to get into. Even if you have absolutely no experience with trading of any kind, you can set up an account and get started in a matter of minutes. What’s more, as there are only two possible results you can bet your money on, the entirety of the training process is remarkably simple.
What’s more, binary trading also allows those taking part to enter into trades of comparatively minor value. Whether it’s £100, £10 or just £1, you can place as little or as much money as you like on the line at any one time. And of course, the fact that the vast majority of online binary trading platforms now fully support most mobile devices represents an added point of appeal.
Is Binary Trading Safe?
For most, this is the question that determines whether or not it’s worth getting involved with binary trading. While opinions may vary significantly, the truth is that the safety or otherwise of binary trading comes entirely down to two things. One being the actions and attitude of the trader, the other being their chosen platform.
If you work with a tried, tested and trusted binary options trading platform, it is you and you alone who has full control of your actions. The options you enter into, the kind of money you put on the line, controlling losses and so on – you are entirely in control of your own destiny. However, if you choose to throw caution to the window or have very little self-control/discipline, it is technically possible to lose an infinite sum of money via binary trading in less than 60 seconds.
Literally – everything!
One of the biggest problems being that the simplicity of binary trading is often misinterpreted as something of a guarantee of success. Which is compounded further by the way in which far too many service providers give the impression that binary trading is a quick and easy way to make a lot of money.
Which for most people, it absolutely isn’t.
Is Binary Just a Form of Gambling?
In a sense, binary is indeed a form of gambling in its own right. This is because no matter which trades you enter into, you can never say with 100% certainty that you will be successful. Even with all the research, computer algorithms and expertise in the world, nobody can claim 100% success rates when it comes to binary trading. Which in turn means that there is always the possibility of loss – precisely as is the case with gambling.
Plus the fact that there can only ever be one of two outcomes often leads to the rather inadvisable practice of simply betting everything on the flip of a coin. You can certainly improve your chances of succeeding with focused research and commitment, but you can never tip the odds so far in your favour as to guarantee success.
So once again, binary does indeed share a great many similarities with gambling.
Should I Bother with Binary?
As for whether or not you should give binary a try, the only person in a position to make this decision is you yourself.
For example, if you have a good amount of disposable income, can afford to lose X amount of money and are willing to put in the necessary time and commitment, you could find binary to be a highly enjoyable and perhaps rewarding alternative to traditional gambling.
However, if you do not have money you can afford to lose, have anything but flawless self-control and are simply looking for a fast way of making a profit, you should probably stay away from binary at all costs.
And if you do decide to sign up, carry out as much research as necessary first-hand to ensure that you do so via one of the web’s most tried and trusted service providers.