Binary Options Gambling: Betting on rising or falling prices.

The broker advertises binary options as a reputable investment product with high returns in a very short period of time. PR consumers on the other hand are concerned about binary options because they think trading this highly speculative product segment. Big is a dangerous game of chance in which ultimately only beats the broker the fact that binary options are not offered by only online brokers. But for now, it’s still not a good idea to put trading in a positive light. We have the concerns of the critics taking a closer look and want to show our readers the opportunities and dangers of binary options in their analysis. objective

What are Binary Gambling Options?

Binary options are structured as a simple financial betting: the trader has two possible events to choose from: the price of the underlying asset can go up or down after a certain time, in one of these events he bets the chosen amount. If, on the other hand, the event does not happen and the price does not work as the trader originally assumed, then the bet bet is lost. This simple structure makes binary options very popular, especially for beginners because trading is to be learned quickly. On the other hand, trading is often criticized because by definition it is actually a bet

Just because binary options are a bet doesn’t mean it’s impossible to trade them profitably Most people know that betting is a game of chance that can’t be profitable in the long run, but that’s not the definition of binary options. Betting on binary options has a high luck component but they are not a pure game of chance because the probability of winning can be influenced by target analysis and a good understanding of the market that traders can experience. Long-term success depends on whether he manages Binary Options creates bets with expected value, if the average expected profit per bet is higher than the stake it is a bet with positive expected value. A lot of such bets will be profitable in the long run.

The problem with variance

As we have seen binary options trading is all about making good decisions and placing trades to give them a chance to win.

For price analysis there are many different methods ranging from relatively simple to highly complex but traders who are very good at price analysis and only But it makes trades that should actually deliver. Positive outcomes often suffer high losses and can even lose their total trading capital, how is this possible?If traders choose more likely outcomes each time, they should actually make profits.This is where it comes in. variant

The so-called average expected value, if a trader places a trade that has won an expected value of 58%, it has positive expected value, so on average the trader will make a profit if he decides to trade. There are only two possible outcomes for each trade: Win or Loss 58% Relating only to the average If there are many trades with expected value they will be long term 58% will be won. On the contrary, this also means that 42% of it is lost, the more trades are made, the more the result is in line with the expected value, which means that the course analysis is always long-term. Individual trading Many trades of this type can also be lost in succession, which under certain circumstances can already endanger the trader’s complete deposit, for example if there are 10 trades of this type can not be expected. Guess 5.8 win as expected, what can happen on a small scale in the long run when thousands of trades are traded, results on the other hand align themselves quite well with the expected value if the trader finishes. End of 100,000 purchases If the trade was traded at some point and had an average expected value of 58%, it can be assumed that the number of winning trades would be close to 58,000.

Options for course analysis are limited

There are many different methods and tools available for users to analyze the price of a trade accurately and make good trades.Course analysis can be learned quickly but there are many complex subtleties whose results can be improved. New additions and methods are being developed regularly so even experienced traders should always continue their education because they can always learn new things.

Many brokers offer free training courses or videos where newcomers can learn course analysis.

Price analysis, though, is one of the most important tools when trading binary options and is extremely important for long-term successful trading. But it should not be overestimated, some beginners assume that now they can win almost every trade with their newly learned analytical skills and advertising for binary options definitely recommends it to their clients. From there are many unpredictable factors in the course of the course and these The predictions can be very inaccurate, even with an optimally performed analysis the probability will only increase slightly, a trader who can win about 55-56% of his trades. With the help of technical analysis is very good and able to make a profit from most brokers, providing he adheres to the necessary risk management, this trader also has to have a life that is over. 40% lost trades

Without good risk management, binary options are gambling

The variance in Binary Options is high because they are “all or nothing” bets that either generate high profits or lead to the loss of the entire bet, since even a good price analysis can clearly predict that the variance in Binary Options will increase. Trade win or lose, there is still a risk factor in each trade.

Since almost all variance can occur in the short term with a large amount of luck, significantly more trades will be rewarded than probabilistic calculations and the trader will make high profits in our example. Speaking of positive variance, on the other hand, negative variance can occur and the trader will lose trades significantly more than the average expected, only when looking at the large number of trades the result adjusts according to the value. expected and good traders will be able to show positive results here.

The big problem with this is that many traders don’t get such a high number of trades because of the negative variance strikes before and they lose everything to prevent this from happening to the traders. Anyone who is serious about binary options trading and wants to avoid betting should have good risk management, which means that only a small part of the total capital is traded, this will protect traders from losing too much. In case of negative volatility and making it impossible to continue trading, in the event of a loss, the volume of the stake is reduced accordingly so that volatility does not affect the capital funds too much. Of course, significantly smaller stakes mean that profits will not increase as quickly, which is why a high level of discipline is required in order not to deviate from planned risk management and also More Risky Many really good traders block their way to success because sooner or later there will be negative variance and capital will be lost on high stakes.

Many brokers offer free training materials

Well, conducting a targeted analysis course is essential for a successful long term, beginners can learn many aspects of an analytical course directly from their binary options broker as the training materials are usually free. It is recommended to go with this deal intensively before starting to trade for real, by good knowledge there is an increased chance of winning, many brokers also offer free demo accounts, here users can get to know trading. Binary options and strategies that are just learned with play money and no risk and use deeper analytical methods so no need to invest yourself to understand binary off financial betting. and to find out if the trade is in line with your idea.

Anyone who is going to experience the first time through a free demo account and now wants to trade with real money should only ever deposit the small amount they can without because there is always a risk of loss. All of this can be limited by proper risk management, but even the best traders can completely avoid it.

There is also a high risk for good traders

Binary options are considered to be a very modern and very popular trading product, reviewers, on the other hand, sometimes criticize the broker’s incomprehensible pitch design and high risk of loss. Despite all analysis options. But binary options remain a highly speculative trading variant that fortunately is at least significant in the short and medium term, even experienced traders with specialized knowledge cannot consistently make profits. But always have to accept high losses, good risk management, risk for while minimizing the loss of all deposits, there is no complete safety, so every beginner should be aware of the fact that high wins are possible But that deposit can also be lost before making the first deposit.

Conclusion: Binary Options is a financial bet, the probability of winning is influenced

The allegation that Binary Options is a game of pure chance can not be confirmed in this way because there are certainly ways to influence him to have the chances of success of some show trading experts, however it is true. Where Binary Options is a financial bet where a bet is placed and a predetermined payout is made if the result is positive, the goal is to bet with the expected value only, this is how you can profit in the long term.

However, the risks of Binary Options should never be neglected because even professional traders expose their capital to a lot of danger through Binary Options. And there is always the potential for high losses, total losses are also possible, which many traders have already experienced, so only money should be spent, losses which can be tolerated without restrictions. Limits and should not exceed their own circumstances be paid to the broker even if they are backed by promising contracts.

Before signing up and depositing money with binary options brokers, prospective clients should carefully read the terms and conditions and verify that they are serious, successful trading with binary options can be made. Only to brokers who trade fairly and in accordance with applicable regulations.