Binary options have been growing in popularity for years. No wonder these trading tools are easy to understand, even for beginners. In addition, when trading binary options there are quick profits and that with a relatively low capital investment. Since large amounts do not have to be used for trading with these instruments, retail investors can also try the binary options. But what is behind these commercial products? What types of these instruments can be found and are binary gambling options, as some claim? In the following we want to answer these questions and also show how much luck is involved in trading.
The most important information about binary options at a glance:
- There are different types of binary options, such as Example high / low, turbo, one-touch or range options
- Trading with binary options is not a pure game of chance
- If you want to trade profitably in the long term, analyze the markets and prepare them Special trading strategies
- There will never be a certainty of profit when trading, but it is possible to increase the probability of winning
Binary options explained shortly
Coming we first answer the question: "What are binary options?" These instruments are a relatively new form of investment in which he is concerned with predicting a certain price behavior. Which framework conditions apply depends on the respective option, but if the prediction is correct, the trader receives a profit set in advance or loses his own bet. This is also one of the advantages of binary options - while with many other trading instruments such as CFDs losses are theoretically unlimited, the risk with this type of investment is limited to the amount.
When trading binary options, the trader always has exactly two options between which he can choose. This makes these instruments particularly easy to understand and even inexperienced traders do not have to shy away from it. There is more than one type of these investment vehicles and they all have specific characteristics and require a different approach.
THE TRUTH ABOUT BINARY OPTIONS
What types of binary options are there?
In the area of binary There are different types of trading and we would like to introduce the most well-known of them below:
High / Low Options: This type of trading is the most common and represents the "simplest" form of binary options Here, the trader decides whether the price at the expiry time of option will be higher or lower than the current price. Each option has an expiry date and the term can be between a few minutes and even a few weeks.
One-touch options: Those who trade such options decide in advance whether the price of the Underlying touches or does not touch a certain specified price mark at the expiration time. The further the price mark is from the current price, the higher the possible profits. If the price touches the mark, the option is closed and the trader receives his return.
No-touch options: Here the approach works in exactly the opposite way to the one-touch option. In this case, the trader sets a price that the underlying will never reach. If he is correct with his forecast, he makes a profit, if the price touches the mark, the option is closed and the stake expires.
Range Options: This does not lead to a specific price in advance specified a course area. The trader determines whether the underlying will be within or outside of this range at the expiry time.
60-second options: Here, particularly rapid gains or also beckon particularly rapid losses. In principle, this type of trading is similar to the high / low options, but here, as the name suggests, maturities of 60 seconds apply.
Are binary options gambling?
Admittedly, binary options are very speculative trades and trading should always be enjoyed with caution. Speculative forms of investment are all too happy to hear voices claiming that this type of trading is nothing but gambling. Even if luck plays a certain role in every way of trading, binary options are by no means a pure game of chance.
Those who trade out of their guts will become involved in the short or long term Loss of his capital. Also with binary options, price trends should be analyzed and historical market movements should be studied. With the help of market analyzes and the right strategy, every trader can significantly increase their own chances of winning and in this way achieve a winning probability of more than 50 percent, as would be the case with a game of chance. Of course, even the most experienced professional cannot predict a course course with certainty, but with enough time and experience everyone can learn to make binary options trading profitable in the long term.
Our conclusion on trading binary options:
Are Binary Options Gambling? This question can clearly be answered with "No". While these trading instruments are certainly speculative in nature, no one can successfully trade binary options in the long run without chart analysis and certain trading strategies. There is never a 100% chance of winning when trading, no matter what instruments are involved and even if a trader can never only win, it is quite possible to realize profitable trading with binary options.