Special Report: Binary Options Explained

The definition of online gambling has expanded in recent years to include activities aside from just casino games and sports betting. One of the most rapidly growing trends has been toward financial betting, and in particular binary options. In this guide you will find out about the basics of binary betting.

Financial Betting Explained

First, it is important to understand financial betting, which generally consists of two categories: traditional Fixed Odds betting and the low-risk spread betting alternative, known as Binary Betting.

Financial markets fluctuate up and down every day. Even the smallest piece of good or bad news can rip through the commodity and currency markets in an instant. If you have a genuine interest in the stock market or currency markets, you should use a qualified broker, but if you're just looking for some fun and to make a bit of cash through gambling, then you can do it with financial betting.

Most online gambling operators both types of financial betting, using similar methods: they offer several (often around a dozen) different levels to bet on, ranging from smaller prices for the cautious to bigger prices for high rollers. They offer everything from 5-minute markets to those who view the small picture to hourly or daily markets for the more patient punter.

What Are Binary Options, Specifically?

Binary Betting is to financial betting what spread betting is to sports betting. It is designed to reduce the risk for punters by allowing for just two outcomes: win or lose.

Stakes and Returns are calculated by whether you choose to buy or sell. If you buy a binary bet, you are predicting that the market level will finish above the line at the end of your selected betting period. If you are selling a binary bet, you are selecting that the market level will finish on or below the line at the end of the period.

Say your binary betting dealer quotes you a price of BUY 20/SELL 18. As your stake is calculated per point, a purchase of $1/point (or currency equivalent) means your total stake is $20. If the bet wins, the market settles at 100. Your total returns are your original stake per point multiplied by 100, equaling $100. Your total profit is the difference between 100 and the price of your bet, multiplied by your original stake, equaling $80.

Stakes are calculated differently when selling a binary bet. If you sell the same market $1/point at18, then your total stake is 82 (100-18) x $1/point, equaling $82. If the bet wins the market settles at 0. Your total returns, therefore are the $1/point multiplied by $100. Total profit is $18.

To Go Binary?

Binary options can be a fun way to "play" the market. However, players should be aware of what they are buying into. By betting on the market with binary options, you are not actually adding money to the market. If you like trading and want to influence the market, make sure you go to a qualified broker and bet directly on the stock market. Binary options are for those that are interested in finance, and want to gamble for fun.