Binary options... a more acceptable alias for gambling?

**woja** · 4 September 2013, 6:02 am

Originally Posted by -Shay-

You're leaving out the fact that when you buy / sell an actual option on a stock, you have the ability to exercise the option (call away underlying stock at the specified strike price or put stock to someone at a specifically stated price).

Actually I didn't. I think you just didn't read my post properly

If the option expires at $41 that's great. I own the right to buy said stock at $40 and make a $1 profit on the difference.

Anyway, from my own personal experience as a day trader, this is irrelevant since 99% of people who buy stock options sell them before expiry anyway. It's usually too risky to hold them until expiry, and even should you decide to exercise your option, many brokers usually incur heavy fees on that, making it all the less attractive anyway. That's leaving out the point that you need to have much more capital to buy the actual stocks.

All this aside, I have never said that binary options aren't like gambling. I just think you guys are giving too much credit to stock trading and stock options trading. I personally know some binary options traders (who are signals providers by chance) that are able to make quite alot of profit off binaries.

I also personally know many people inside the binary options industry, and I can tell you that 90% of people that sign up, never see their money again simply because they're usually very inexperience or just downright gullible. I mean really, are you going to trust a signals provider given to you by the broker who has a vested interest in you losing money?

**-Shay-** · 4 September 2013, 6:40 am

Most people I've worked with in the past (who were sophisticated enough and suitable for options trading) have sold covered calls to try to increase profits on their actual holdings (in flat or down markets) or they purchase puts (in down markets) on holdings they already own in case the bottom fell out of their holdings.

With that being said, actual options trading is not suitable for ALL types of investors, as they require a higher level of sophistication - without even getting into margin or exercising said options.

I can tell you that 90% of people that sign up, never see their money again simply because they're usually very inexperience or just downright gullible.

I rarely believe anything being placed in the 90th percentile - but I think I do believe your above statement.

**universal4** · 4 September 2013, 11:58 am

Bringing the debate about stock trading and stock options trading really doesn't change the fact that binary options is gambling and NOT investing whereas the previous two could be considered a form of real investing.

But the sites that pull in these traders do not define that, and do in fact lead their gamblers to believe different.

Rick
Universal4

**ocreditor** · 9 September 2013, 6:32 am

Originally Posted by universal4

Binary Options are NOT really entering the Stock Exchange arena, they are just betting on the prices of those stocks without actually entering the arena...

Anyone know a website which actually buy the stock for you and also have affiliate program ?

**universal4** · 9 September 2013, 6:30 pm

Not like I have the money to actually do that myself, but wouldn't mind hearing the answer to that also.

Rick
Universal4

**dowemis8** · 5 February 2014, 7:45 pm

I think its a part of gambling and a part of forex.

**annetrose** · 4 June 2014, 4:42 am

Originally Posted by universal4

You are not trading the options in any way.

You do not own it, you are trading your money for the right to gamble on the up or down movement. If you win the gamble, you own some of the money back, but not the option.

You may have a personal manager, but they guide you in guessing, or gambling on the up and down movemenet.

Saying it's trading gives the impression that you actually own something.

Rick
Universal4

Dear Poster, I can tell You for sure, that even the Forex and so developed Stock market... Do you think that stock market would be so developed because everyone earns money? Not for sure, it is rich because people loose money! Moreover, on the stock market only insiders succeed because all new are already incorporated into the stock price increase and decrease before it goes public..so everything is gaming here even if there are nalysts and blah..

However, what the advantage of a binary option is even over the forex...first of all it is the fact that trader will loose only depositing money and no 1 cent more. However, in forex, You might be left over a big credit and nobody will care about Your financial potential....need to repay money that is it.

**adam911** · 4 June 2014, 9:21 am

Originally Posted by annetrose

Dear Poster, I can tell You for sure, that even the Forex and so developed Stock market... Do you think that stock market would be so developed because everyone earns money? Not for sure, it is rich because people loose money! Moreover, on the stock market only insiders succeed because all new are already incorporated into the stock price increase and decrease before it goes public..so everything is gaming here even if there are nalysts and blah..

However, what the advantage of a binary option is even over the forex...first of all it is the fact that trader will loose only depositing money and no 1 cent more. However, in forex, You might be left over a big credit and nobody will care about Your financial potential....need to repay money that is it.

Definately, everybody should understand that only 5-10% making money on financial markets

**universal4** · 4 June 2014, 1:43 pm

Binary options and forex are pretty much gambling and you are NOT investing.

Almost every single affiliate site I have ever looked at for forex or binary pitches the "investment" end and many unsuspecting visitors think they are getting into the stock market or that their deposits are backed by investments.

Sadly it seems that the financial sites are a little less revealing when it comes to the truth about how closely the binary and options sites are to gambling.

Rick
Universal4

**annetrose** · 5 June 2014, 1:47 am

Originally Posted by universal4

Binary options and forex are pretty much gambling and you are NOT investing.

Almost every single affiliate site I have ever looked at for forex or binary pitches the "investment" end and many unsuspecting visitors think they are getting into the stock market or that their deposits are backed by investments.

Sadly it seems that the financial sites are a little less revealing when it comes to the truth about how closely the binary and options sites are to gambling.

Rick
Universal4

Dear Universal4!
Do You think that Stock market is investing?

**jonny69** · 17 June 2014, 8:09 am

binary options dose not convert casino traffic well.

**ocreditor** · 17 June 2014, 8:18 am

Originally Posted by jonny69

binary options dose not convert casino traffic well.

Agreed. The traffic is actually very different, sports-betting traffic convert well with casino traffic

**grem** · 18 June 2014, 1:22 pm

investments, trading, it is all gambling. It is professional gambling if you do it well and profit on average but that is not most people

**eaton2003** · 28 June 2014, 3:56 pm

Originally Posted by jonny69

binary options dose not convert casino traffic well.

Binary options trading is very different than casino traffic. Worth noting the average deposit is that of ten times or greater than an average deposit a casino player will make. Binary options individuals like to be called 'traders' even though this is not the case and although Binary options is just a big casino game they don't want it to be seen this way.

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