Is Trading Binary Options a Gambling?

Is Trading Binary Options a Gambling?

Many South Africans who are interested in trading binary options, often ask is trading binary options a gambling. Although, binary industry is present on financial market since late 2008, there are still many people who find binary options trading as a completely new type of online investment.

In this article, we will provide more information about similarities and main differences between binary options trading and gambling.

To know definitions of trading and gambling, we recommend our South African readers to check our article below in order to get better understanding of it and to find out is trading binary options a gambling.

Binary Options Trading vs. Gaming in South Africa

As mentioned above, in this paragraph, we will explain what trading is and how it differs from gambling.

Trading term is used in financial industry, such as binary options for example, and implies undertaking an action of entering or closing market position.

Gambling includes wagering money where you can’t be sure of a final outcome. In gambling, the strongest factory is appetite to win and earn money.

Therefore, differences between trading binary options and gaming are visible in the early beginning. To be successful in binary options, traders can not rely only on luck factor. It takes a specific knowledge level and skills to overcome so that traders can maximize profit while trading binary options.

Risk Involved – Trading vs. Gaming

As regards to risk level, this is one of the most important segments when investing own money on different markets. Each trading activity implies a specific risk level. When trading binary options, we recommend to find broker who provides demo account for practice.

Also, it is more than clear how to be successful and profitable trader in South Africa, practice and use of different trading features and strategies contribute to lower risk exposure.

In binary trading, risk level varies between different variables, such as type of underlying assets. Traders can choose whether they want to invest in stocks, commodities, currencies or indices. If a market of particular asset is unstable, of course that a risk involved will be much higher than with other assets.

We advise traders in South Africa to check broker reviews and read what available trading instruments can be used. Also, use of various strategies, for both new and pro traders is something which is considered as valuable in this online investment.

Unlike trading binary options, risk level is much more higher in gaming industry. Gaming industry implies numerous gaming websites, who offer players worldwide online casinos, including slots, poker, roulette and many more.

So how does it work?

If you are a player in online casino, then a software will use different algorithms to make odds, which can enable players to achieve high payouts when playing games. Also, gamers are able to invest more money and are able to increase amount of money or lose even more than invested.

Unlike gaming, in binary options trading, South Africans are always aware of potential money loss and money gain.

Regulation Status in Binary Options

There is one important factor that shows how trading binary options is not a gambling. For its appearance, traders in South Africa have on their disposal to trade with many reliable brokers, from which majority of brokers is regulated by CySec authority.

Cyprus Securities and Exchange Commission is a regulatory body that is responsible for monitoring business conduct of binary options brokers who operate on financial market. Their job is to detect a scam broker and pay attention that traders’ funds are safe with them.

Unlike binary options trading, in gaming industry, software is the one that should ensure a particular payout spent. If that wasn’t the case, there would be room for manipulation of gaming machines.

Popular and Widespread Online Industries

Both binary options and gaming industry are very popular among people in South Africa. However, it seems how they target different people, thanks to its main characteristics: luck, motivation and excitement.

In gaming, luck is by far the most common ingredient of how to achieve high payouts. A variety of online casinos, offer their players an opportunity to get rewards. Of course, they often say yes and enjoy in even more excitement while playing.

South Africans who invest in binary options also enjoy in thrill, but on different level, we would say. To become pro trader, it takes some time and knowledge to get there. A great thing in binary options is that is simple to begin with and offer option to earn money to both new traders as well as experienced ones.

With binary options, traders can choose among different trade options, short term and long term. Also, a selection of expiry times are available, ranging from 30 seconds to even 150 days.

The final conclusion about is trading binary options a gambling, we would say no. although in both cases, a risk level is involved, it does have more differences than similarities. Strategy is a strong segment which shows how to be successful in binary options, relying on luck is not an option.