It is not a surprise that even regulators are confused on how to classify Binary Options.
Is This Simply Gambling?
Is it a gaming product or a financial product? Is Binary Options gambling? If yes, why not to put it under gaming regulation. Is Binary Options a financial product for trading? If yes why not to apply financial regulation to its full extend? In short industry regulators throughout the world do not know whether to classify binary options as a financial instrument or gambling product.
This issue has opened too many loopholes in the system and of course many Binary Options scams have risen due to these loopholes. Of course, ordinary traders are the ones baring major losses.
“IQ Option is gambling, lost it all”
However, this does not mean that Options are fake products. What are options? In another word, gambling is taking binary options or betting risk in the hope of gaining an advantage or a benefit.
In binary options, it is committing your put or call orders in order to gain a financial return. Indeed, in our Forex Halal or Haram article we discussed about how gambling could make Forex Haram too.
Binary Options Trading vs. Financial Spread Betting
Is it the same in Binary Options? Is Binary Options a financial product?
Options are financial products. Since their inceptions, analysts have focused on developing trading a systems with positive expectancies. Making, Options a financial product.
How Binaries Work – Binary Bets Explained
What about Binary Options? In retail market as we know, none of the orders executed by the binary options providers go to market. As a result, even if you have a good strategy you end up in the hands of hungry sharks, your broker! How to distinguish trading from gambling? There is a thin line between trading and gambling. The good news is that you can test yourself to see if you really are trading or gambling. To test yourself, you need to look into yourself, what you are trading and how you are trading.
Why are you in Binary Options? You got a call or heard that Joshua made X amount in a day with Binary Options.
If you're still unsure whether binary options is more like gambling you should read this article.
It means you are attracted by your greed. You are likely to gamble too! What are you are trading? Do you understand the fundamentals of the instrument you are trading?
How are you trading?
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Time is money, we all get it! However, it is almost impossible to put a financial product into time perspective.
Even the best fund managers will fail to predict what will happen to the market in minutes. They can analyze the price however can not put it into timeline. It is already difficult to analyze a product from price perspective.
BINARY OPTIONS TRADING - How to Trade With Binary Options Strategy
Trying to trade a product against a selected time period will make you lose on the long run. The house wins all the time! Is Binary Options haram?
Sharia law is not clear even with the traditional finance as we know.
Gambling or financial instrument?
Majorly there are 2 problems when it comes to trading as far as Shariah law is concerned: Earning interest Riba Greed or gambling Even if you manage to bypass the Riba issue in Binary Options, you will still have issues with Greed and Gambling. Binary Options is Haram if you have greed involved. 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 can not keep up with these terms, your Binary Options will be Haram. Thus, Binary Options is not permitted under Islam. Is Binary Options gambling or strategy energy binary options Are you able to generate your strategy with a long term positive expectancy?
Is All Investing Gambling?
If you can not defend your strategy for flaws or for its logic, you are then most likely gambling. In traditional binary options as you know, you are likely to be gambling.
Instead of you, your broker has a positive expectancy.
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They target people failing to cntrol their greed. Especially, if you have lost your job, or are financially distressed, you are likely to binary options or betting a victim to one of many binary options scams.
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 latest.
Many traders have lost hundreds of thousands of USDs into this industry as they never understood their trading objectives. As a result, we can conclude that Binary Options is a gambling product.