Binary options are financial bets. However, it would be a mistake to consider them an analogue of roulettes, binary options trading app is not a casino according to the middle range of rules on which you can earn.
Binary options essence
Some brokers are moving away from the name “binary options”, replacing this definition with the term “fixed income contract”. A new name better reflects the essence of this tool.
The essence of trade binary options is that a trader must fulfill a certain condition and receive a fixed, predetermined income for this. For example, you need to predict where the price will be at the time of expiration (deal expiration). If an option is bought and the price is higher than the purchase level, you get a profit, and its size is known even before the start of trading. For other types of trading binary options, the conditions for making a profit are different.
An example of your earnings
We have 100 dollars and we believe that the euro against the pound will rise in 10 minutes. We bet that USD100 on the euro going up and if we were right, after 10 minutes, depending on the broker, we earn 70-85% of our initial bet, namely USD70-85. Therefore, after a successful bet, 100 dollars turn into 170-185.
Binary options and roulette are two different things. Why?
Working with binary options is essentially betting, binary options traders do not buy the underlying asset, do not work with exchange instruments. Making a deal means betting on what the price will be at the time of expiration (this parameter is set before the deal is made).
Binary trading cannot be equated with gambling. The reason for this is that in the case of binary options, the trader has a basis for analyzing and predicting the behavior of the price of the underlying asset in the future. In gambling, for example, roulette, this is not the case, when the roulette spins, the players have to rely only on luck. A trader, on the other hand, can predict the behavior of the chart and achieve a win rate of more than 60%, the win rate is the share of fulfilled forecasts.
Another feature of binary options is the use of the same charts as in real exchange trading. This applies to all types of financial instruments. The charts of binary options brokers and stock exchanges coincide almost 100%, manipulations with quotes are excluded.
The future of binary options
Working with binary options can be profitable, but this is the most difficult type of trading, so it needs to be well learned. In addition to the correct prediction of the chart movement direction, the trader must also predict the time of the scenario implementation.
Binary options have a great future. The current decline in interest in this instrument is rather temporary, much will depend on the position of regulators and the development of regulatory documentation on binary options.