Binary Options can be used as insurance to hedge actual positions in other assets, like gold, silver or stocks, for example. Of course, not all usage of Binary Options should be considered gambling. 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. 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.īinary Options have an expiration time, and therefore cap your profits in two dimensions: price and time. The truth about binary optionsīinary 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. These types of options are different from plain vanilla options and are also sometimes referred to as "all-or-nothing options" or "digital options".
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