There are various binary games. If you are a U.S. person you can play the
NADEX game, or perhaps use traditional Options. In every case, unless you can
PREDICT the price of the underlying (these are all “derivatives” of something)
then you can’t win any of these games.
Some “binaries” do provide for early discretionary expiration of the contract
with a lesser payout, but let’s just concentrate on the fixed term Up/Down
Binaries as with CloseOption dot com.
Personally, the idea of trading using only “candles” lacks the precision
and ability to predict future price. Yes, I know that "price action trading"
sound good, but for my money it isn’t predictive enough. My own work
in Forex uses advanced Currency Analytics, involving prediction of an
individual pair’s trending, from the interacting trending
of the 2 Underlying Currencies X and Y trends in real time
After all, any given Currrency Pair is fundamentally constrained by the
relationship between 2 Currencies’ behaviors, which goes a bit deeper
than Currency Pair price action.
But this isn’t a class on Technical Analysis !
To convince yourself, get a CloseOption Demo account and just try
to Win on a relevant predictive timeframe, using only Price Action.
If you have a way of reacting to a “spike” in sub-second latencies, then
sometimes you can use the “noise level” of pricing retracement to
Win, say, a 1 or 2 minute fixed timeframe.
But that isn’t enough to Win enough, and very much encourages the
worst habit in trading, which is “over trading”.
Binary Options expose the “wiggles” of price action which most traders
disregard. A Binary Option trade can operate on the volatility inside
a single PIP of Price Action, which requires non-traditional Analytics
methods. Just sayin’… this is a warning that Binary Options may give
you the impression (especially if it’s dressed up as a “game”) that
Winning is easy. Indeed that is how many traders are sucked in, to
directly provide (through their Losses) the revenue to fund the Winners !!
This is indeed the main reason Binary “games” lilke this are BANNED,
since they make it simply too easy for the Novice to participate and lose.
In that respect, they are just like widely available Lottery games, and we
all know what that leads to for the average working Joe or Jane !!
For the professional trader, they are good Risk Management tools.