My concept about binary option
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    My concept about binary option

    Dear readers, most of the people think that binary option is gambling, and it is prohibited in the religion of Islam, I am also a strong believer of Islam and I know that gambling is prohibited in Islam, but if we see the binary option, and our trading in real account, then there are some similarities that we can see and understand about this concept. I am not telling that binary is gambling or not, I am telling what I think about it.

    In classic trading, we use two tools mostly, one is take profit and other is stop loss, if we open a trade with take profit and stop loss, then it means that we think that market may move in that direction which we are expecting, similarly we use this myth in binary option, but with less risk, because the difference in my view between these two trading, (binary and classic) is leverage. If the market hit the stop loss then you lose the money, similarly in binary option, if market is not moving in your favor and not hitting your target then you will lose only that amount which you used to open a trade, you don't need to wait for market reversal.

    But besides these concepts and believes, I don't usually trade with binary options, what are your opinion? please share here.

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    Rookie rinaji's Avatar
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    Hi dear... In this thread I did not find any explanation about the comparison between binary options and forex trading.
    It is my understanding from my point of view:

    Forex Trading: Just like conventional trading, we can buy at a certain price in accordance with our wishes, and we can sell at a certain price in accordance with our wishes. Profit and loss is dependent on the real market conditions. Leverage is only one of the facility that we get from the broker, leverage can be applied in any other business/ conventional business.

    Binary Option: We make an guesses according to our analysis, there are several variations of binary options, the price guessing, guessing the direction, touching or not touching a certain price, etc.. And our order are limited by time. This is the main difference.

    The difference
    Forex trading: We just trade according to the real market. For example, we bought at the price of 1.0000, and sell at the price of 1.5000 if profit, or sell at the price of 0.9000 if loss. Then we'll get the results in accordance with what we want, which we sell at the price of 1.5000, or 0.9000 . There is no time limit, although in a few months the price does not touch the level of the price we want, then we are still not getting the result.

    Binary option: We're just guessing the price, suppose we guess the direction, up or down. For example, the price now is at 1.0000, and we guess "up". The time limit is 1 day. So we get the result in 1 day. Even the price just move one pips.

    conclusion:
    I make an example:
    Suppose you have $ 10:
    - If you use your $10 in forex trading, suppose you use a 0.05 lot size (leverage 1:1000). Standard lot. Buy order at 1.0000 price, then you will lose all of your money ($ 10) if the price drops 20 points to 0.9980. Right? But if in just a day the price rise 100 pips and you close the position, then you get a $50 profit. Right?

    It's same with conventional trade, Suppose you buy eggs for $ 1, you will lose all of your money ($ 1) if you lose your eggs, or the eggs was broken, or the eggs is rotten. (without leverage). But if then the price of eggs is rising to $ 1.5 in a day, and then you sell your eggs, then you get a profit of $ 0.5.

    - If you use your $10 in binary: Suppose you play rise or fall of binary. for example, we will take the same conditions as we trade (above). We put guesses = "rise" . The deadline is one day. If the broker give 80% if you right in guessing, and you lose 100% if you wrong in guessing. So what would you get if then the price rise 100 pips in the deadline time? Of course you only get 80% or $8. And if the price fall 1 pips in the deadline times, you will lose 100% or $10.
    But the advantage is, if the price just rise 1 pips, you will get $8 profit, and if the price fall 50 pips and then pullback (rise back) 60 pips in the deadline time, you will win $8. Not lose. While if you do real trade, you will already lose all $10 when the price fall 50 pips.

    If we apply binary in conventional, suppose you buy eggs for $ 1 (for just 1 day). If tomorrow the price of eggs is fall to $0.9, then you will lose all ($1). But if then the price of eggs is rising to $ 1.5 , you will get 80% or $0.8.
    How can? Why do we lose $ 1, while the price of eggs is only fall $ 0.1? And how could we get $ 0.8 while the price of eggs rise only $ 0.5?

    So I think binary option is a guessing game, just like coin bet.. Because we get results calculations that do not fit with the real market conditions.

    Gambling or not, it is up to you to understand and interpret. I never said gambling or not.
    It's just my point of view, sorry if Im wrong. I want to know more about this from others. Thanks

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    If you lose, be patient. If you win, stay humble

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    Dear Ninaji, I think you haven't yet read my first post with care, that's why you are finding explanation, what you have explained about forex trading, I can assume that you trade without analysis, because you differentiate binary to classic with analysis of market, if you carefully read my first post then you will understand that any person can do binary or classic trades without analysis, but success will be a big question mark, but if a person do either binary or classic with analysis then he will know the expected market direction, that's why I put the light on analysis specially. I was talking about similarities not differences.

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    If you say binary option is not gambling, then you are saying no truth really. But that does not mean it is a place of wasting money. If you take it seriously, you can build your own trading system that will be the guide for you entry and exit all the time. It is not always about how you are making this to work for you, it is about how you are maintain your portfolio.

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    Quote Originally Posted by cozard007 View Post
    If you say binary option is not gambling, then you are saying no truth really. But that does not mean it is a place of wasting money. If you take it seriously, you can build your own trading system that will be the guide for you entry and exit all the time. It is not always about how you are making this to work for you, it is about how you are maintain your portfolio.
    I haven't yet told you or any reader of this thread that binary option is not gambling, it is gambling, but if we do it just like classic trading then it will become least gambling opportunity, rather it will be a fruitful trading, because of less risk, each and everything in the classic and binary option analysis is same, but the difference is time.

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    these business research are old we should try to always upgrade out business research if we really want the lifestyle of efficient industry research to keep flourish in this excellent community because there are many investors who can not do an efficient industry research so tey all look up to us and they want to get more from us.

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    [lang=pt]I completely agree with you on this, binary options trading systems are not a scam. In some way or the other it is similar to normal trading but involves some risk. If you have knowledge about how prices vary in the market then you can surely make huge profits in this trading. Little risk is always involved whether it is a normal trading or binary option trading but it all depends on how wisely you are trading and what strategies you’re following to be successful in this trade.[/lang]

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    Really, the binary option could be gambling because of the fact that you will first have to know the direction of the market, and you must still get the timing right. This is why it is more important to exercise caution in trading this, and never you sue the amount of money you can not afford to lose because of the risk involves in doing its trading.

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    Quote Originally Posted by Jax Mitt View Post
    [lang=pt]I completely agree with you on this, binary options trading systems are not a scam. In some way or the other it is similar to normal trading but involves some risk. If you have knowledge about how prices vary in the market then you can surely make huge profits in this trading. Little risk is always involved whether it is a normal trading or binary option trading but it all depends on how wisely you are trading and what strategies you’re following to be successful in this trade.[/lang]
    yes of course that we can not say so as those are scams with the use on the way with the discussion about of the service as giving of the technical challenge on arbitraging of the choice on options with the good deliverance of the market scenes of the finance of the price movesment with the volatility.

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    The trading conditions expressed for a good trade to go through and to come with some profits is the one that has to go then come with the profits and not to risk as much as you wanted that is when. You trading you have to know that the smaller the better you should not be greedy when trading with always do it in small bits that way you can not expose so much to the investments that you have made

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