Binary option is not good for earning money.
it is 100% gambelling.
It was banned in the UK & EU for a reason
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It’s not much different than options… both can expire out of the money for a total loss. I do agree 5 min binary and shorter time frames are complete gambling. But longer time frames can allow good hedges on positions.
I did look at Binary options as a product and I couldn’t quite see how to get around the probability numbers. For example, when I put the binary trade on I have a predetermined trade outcome of either profit or loss. This binary result gives me a probability of 50/50. If I bet a $1 on a binary trade that pays 75% my maximum win is $0.75cents if I have a loss… I lose $1. So if I have two binary trades, one win and one loss (50/50 probability) that will equal a net loss of $0.25cents. So to break even with binary options (with a 75% payout), to beat my break-even point I need a win ratio of greater than 57% wins. I have already shown I have a pre-determined binary outcome of 50/50, I can’t get to 57%. After ten $1 binary trades statistically I should be down $-1.25 net. (5 wins= $3.75, 5 Losses = $5.00 = net $-1.25)
So how do I get around this statistical issue? All experienced and successful traders have a good understanding of gambling houses and when presented with this problem they are aware that gamblers have used a strategy called martingale. Gambling houses know this strategy and have countered with betting limits on the tables. The Binary options brokers, no surprise, also have betting limits to counter this strategy. This is why I stick to trading Forex and build automated systems that work.
Regards
Hi Jckbt, I know it’s been a long time since you posted this answer. Can you share your forex automated system if you don’t mind?