Don’t Gamble on Binary Options
December 31, 2015
Whether you like the idea or not, it is the risk involved and the possibilities of a win that makes gambling so tempting. Governments also welcome casinos into different areas because they benefit as gambling raises tax revenue. These days you don’t have to drive out some distance to a casino anymore – you’ll find opportunities at petrol stations and halls and online. Gambling can take the form of traditional slot machines to games like roulette, the lottery or the stock market.
Binary options work in that instead of purchasing a share in a stock, traders make predictions with regard to where the values of these assets will go. The market is unpredictable and the chances of coming out on top are the same as your chances with poker. The lure of winning is to be able to slap a curt resignation note on your boss’s desk. Some gamblers are so desperate to do this they wager their entire salaries away and lose their homes and cars as well as their families as a result.
When it comes to binary options trading, many feel it is much like gambling, whereas the more experienced traders argue that this activity is more scientific, and if conducted in the right manner, can yield great profits.
Don’t Gamble on Binary Options – Wins are Regarded as Earnings
Many people don’t really look at binary options as a form of gambling because it is not considered gambling by governments. Wins are looked upon as earnings and not winnings and therefore the winnings are taxable. More recently however, binary options are being criticized as nothing more than pure and simple gambling, attracting people from all walks of life. Most binary options are Fixed Return Options, which means your gains and losses are predetermined. As an example, in a $100 trade, many options offer a return of 81% for a successful trade. Many offer to return 10% of the purchase amount should your trade be out-of-the-money.
Don’t Gamble on Binary Options – Legitimate and Exciting Investment?
If you want to try out binary options trading, then you should at least find a reputable broker. On the other hand, Gordon Pape, a Forbes columnist, warns against binary options, claiming that this kind of trading appeals to those who indulge in the slots and poker machines. He says binary options can’t be looked upon as legitimate investing. He reckons that you need to win 54.5% of the time to just break even.
Other people suggest that binary option trading has become a kind of sham and that some websites describe it as ‘an exciting new type of investment’. These websites say that when a binary option is purchased, a contract is created that gives the investor the right to buy an underlying asset at a fixed price and within a specified time frame. The option must be held until maturity and it can’t be sold before then. These sites claim that you can’t lose more than a specified amount, and that if you guess right, you’re in for big gains and the ease of conveniently trading from home.
Don’t Gamble on Binary Options – Addictive Losses are part of the Game
Binary options trading can quickly get out of hand and become addictive. The trouble comes from making small bets, but when added up and the end of the day can be quite huge.
Some people are for binary options trading while others see it as just another gambling form which can get out of hand. If you know your assets and you use the right trading tool, then you can be in the driving seat with binary options. However, people who have gambled in the casinos and who have also traded binary options just say that trading binary options is plain gambling disguised as financial trading. They say binary options trading may be fun and risky, but just like gambling on slot machines, it requires not an ounce of skill, and you’ve got to be prepared for losses.
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All info was correct at time of publishing