Gambling or Trading – The Yin And Yang Of Binary Options B2B’s

Binary Options – Where are you Headed? Trading or Gambling?

It is obvious that binary options have two sides. There is the up side and the down side. You either win or you lose. What is not so obvious is that there are also two approaches to binary being taken by the platform providers. Some platforms tend to think of binary options as a form of gambling, offering more and more options for short term and other high risk types of trading. Other platform providers like to take a more high handed approach to binary. To them, and to those of us here at (former, binary options are a legitimate trading vehicle and speculative instrument. Is one approach better than the other? That is hard to say. If the market place did not demand the products the platform providers would not see the need to make them. What exactly am I talking about? Have you ever noticed how some brokers tend to have a lot of very short term options like 5 minutes, 2 minutes or 60 seconds? These types of binary options are geared more for the gambler and thrill seeker than they are to market speculation.




Tradelogic Innovates With Super Turbo

Tradelogic innovated binary trading this year with what they call Super Turbo. Turbo options are what they call their 60 Second trading, Super Turbo are options with 45 seconds, 30 seconds or even as little as 15 seconds until expiry. These super short term binary options are incredibly risky and at the cutting edge of the gambling side of binary trading. Tradelogic even refers to the options in their own press release as a game. The problem with such short time frames is the sheer unpredictability of the market at that level, not to mention pip spreads that may prevent traders from profiting. Tradelogic is a CySEC licensed financial services provider but this move makes them seem more like a gaming and gambling service than a platform for market speculators. Other regulatory bodies overseeing binary options in the U.S. and Japan have forced platforms and exchanges to focus more on longer term expiry. CySEC could follow in those footsteps as the industry matures. CySEC is already contemplating banning bonuses and other “free” gifts binary brokers use to attract and retain traders.




Binary Options As A Financial Tool

Not all binary options brokers chose to go the route being taken by Tradelogic. Platforms such as Tech Financials, AnyOption and SpotOption provide a wider array of options and expiry’s in order to better serve the financial community. These platforms tend to have longer term expiries, sometimes out for several months, that are more suited to market speculation. One avenue being pursued by the more serious trading houses is regulation, either by CySEC, the FCA or one of several other regulatory bodies that emerged at the end of 2013 and beginning of 2014. Regulation provides a more level playing arena, safety for traders and a certain amount of respectability for the brokers. Another avenue that is being pursued is association with known forex brokers. AvaTrade is one fx broker who has launched it’s own binary options platform. It is clear that binary options are here to stay. It is also clear that there may be a split in how binary options are offered. On the one hand there is the entertainment and gambling side of the question, on the other there is the financial aspect. Regardless of how the industry develops, real traders and speculators will likely avoid the super short term options while the thrill seekers will continue to rely on 60 second trading for their fun.



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