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https://www.pointzero-trading.com/Products/view/PZBinaryOptions
The truth about
binary options
Binary Options have become very popular and attract a lot of novice traders, who find easier to trade
binary options than doing actual trading, because position management is out of the equation. Most of them feel they have an edge because they can read technical charts, but ignore that short-time price movements are completely random and have nothing to do with technical analysis.
Binary Options have an expiration time, and therefore cap your profits in two dimensions: price and time. The odds of the future price being above the current price in a fixed period of time is always a 50% chance, and thus trading
binary options is actually gambling.
Of course, not all usage of
Binary Options should be considered gambling.
Binary Options can be used as insurance to hedge actual positions in other assets, like gold, silver or stocks, for example. But make no mistake, trading
binary options without an underlying trading strategy is gambling.
The mathematical truth is that, using fixed 50-50 wagers, the broker has an edge and you must be right 55% of the time in order for your bet to have a neutral expected value in the long run.
No one, no matter how knowledgeable, can consistently predict what a stock or commodity will do within a short time frame. Will Apple shares go up or down in the next 10 minutes? Unless there has just been some major announcement from the company, there is no way to even guess at that.
