Some analysis can make a difference
Tags: Binary options 6 min read Binary options are a hot topic at the moment, people search information online, read non-factual feedback and get scared away, we have therefore decided to come up with an article to clarify the difference between trading and gambling, as there is one.
In different countries regulators 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 and due to this fact we had to leave a number of countries lately, among them are Canada, Australia and Belgium as the earnings on iqoption binary options. From today, that is August 18th, we have stopped providing services to both old and new customers from this country.
Gambling or financial instrument? Well, 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 may not be so uncertain.
The risk will always be there and the higher the payouts the riskier the investment is. With binary options, the risk are always known in advance. This is actually similar to bank deposits, you invest a certain amount of money, you may be protected up to a certain sum depending on your government, and the bank offers you a fixed annual percentage.
PKV participated in debate on CNBC Awaaz on Binary options in India,
However, with banks since the risk is relatively low so is the payout on those savings accounts. When you trade binary options, it is important to ask yourself: What am I trading? How am I trading?
If you trade any financial instrument without a strategy that has a positive expectancy, then you are gambling. Let us take a look at a few examples to see whether you are gambling or trading.
Gambling or financial instrument?
Playing the slot machines in a casino. This is clearly gambling as the odds are in the favor of the slot machines over time. If you play long enough you will always lose.
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The casino always wins. Trading options with a system that has a positive expectancy. This is clearly trading and not gambling as you can make money over time even though the outcome of any one trade is unknown.
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Trading assets without a system that has a positive expectancy. This is clearly gambling, as it is uncertain whether you will make money over time.
Some analysis can make a difference Internet sites money with investment sum up, if there does not exist a earnings on iqoption binary options of trading that has a positive expectancy, then you are gambling and what you are trading is not a financial instrument.
Because trading binary options includes risk management and both technical indicators and historical news analysis. Trading requires a lot of concentration and feeling of responsibility for the actions you take as there will be positive or negative consequences and you are solely responsible for them.
Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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