We love binary options, they are fascinating, fun and potentially profitable in both the long and short term. However we do find it a bit disingenuous that proponents of binary option (usually binary option brokers or broker’s affiliates with an interest and a bias) present them as a solid investment to be traded with professional institutions that take a commission % like financial services companies. They call the customer service agents “financial advisers” or “trading experts” and refer to depositing into your account as “investing”.
n fact when you use binary options you are not “trading” anything you are wagering and the brokers are as much like bookmakers as they are investment houses. They do not take a commission like other brokers do, they get your money if you lose and lose money if you win like bookmakers do (don’t worry they do not restrict or close the accounts of long term winners).
But we disagree even more with the way binary options are presented by opponents, (usually working in the traditional financial sectors with an interest and a bias) that binary options are a form of irresponsible gambling with no skill involved offered to suckers by dishonest operators.
Both of these characterisations are inaccurate and the truth is happily in between. “Trading” binary options is more like what we think of as betting than investing but they can be really good bets with positive expectation for long term profits. These are new wagering markets and are full of inefficiency’s just waiting for a smart gamblers to take advantage of them but it does require research, patients and skill, not a bit like games of chance such as roulette or craps.
We all know that some of what city of London and Wall Street traders and stock brokers do is more like “gambling” than “investing” and we all know there are professional sports bettors and poker players who take a systematic, data based, businesslike approach and make long term profits which makes their “gambling” more like “investing”.
Don’t get hung up on whether binary options are investment trading or wagering, they are all ways of taking an opinion about an unknowable future event and placing a monetary consideration on it with the possibility of profit or loss. Just ask are they enjoyable and can I make long term profit? The answer for us and many of you is yes and yes! Join up to Beast Options and read around the rest of this website to make it happen! Be Champions.
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