Binary trading is a relatively new concept, yet it attracts millions of people from all over the world. It is easily accessible, easy to learn and simple to perform. What’s more, it promises great earnings once you get experienced in it. More and more people decide to try this trading method, and new brokers, trading robots and signals emerge almost every day. Still, there are those who compare this trading method with gambling and decide to stay away. In this article, we will explain some similarities and differences between these two concepts, and elaborate why they are not the same thing.
Why people think of binary options as gambling
Even though binary trading is simple to learn, it still requires investing a lot more than just money. If you want to be successful in it, you need to spend a lot of time learning, mastering certain techniques and gaining knowledge in market analysis. Also, you need to be constantly aware of the events and changes in the market, so you know when the best time to invest is.
Unfortunately, there are people who do not approach binary trading this way. They decide to base their trading decisions on intuition, luck and emotions, and they are the reason why there is a common belief that binary trading is the same as gambling. In reality, however, they are quite different.
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Similarities between binary trading and gambling
Even though binary trading and online gambling are different concepts, some similarities still exist. The most obvious similarity is that both activities are performed online. There are specialized websites for both activities, but of course, they differ from each other.
Another similarity is that both binary trading and gambling offer you a sort of financial reward. If you approach to binary trading as you would to gambling, then these two concepts are indeed quite similar. This means that, if you really on pure luck, than you are not a binary trader, but a gambler.
Differences between binary trading and gambling
If you approach to binary trading with reasoning and logic, then it differs a lot from online gambling. First of all, you make the decisions based on the market analysis and the changes that occur in assets’ prices. This means that you do not rely on luck, but you use careful planning, skills and knowledge to gain earnings. With binary trading, you can influence on the outcome of your trade by carefully planning and monitoring the market. With gambling, it is nothing but pure luck. Then, when it comes to the amount of money you can win or lose, binary trading is way more straightforward than gambling. You know the potential earnings or loss in advance.
Lastly, binary trading uses different tools unrelated to online gambling. There are various binary signals and automated trading systems. They help you execute the trades automatically by following the trading signals and respecting the parameters you give them.
All in all, if you approach to binary trading the right way, you will see that it is a method of earning money, not winning it.