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Binary Options Betting vs. Spread Betting

There is a distinction to be made between what is known as "financial spread betting" and binary options betting. And they need to be pointed out, because there may be some confusion between these different forms of financial betting.

For one thing, in spread betting you could possibly be "on the hook" for more money than you have originally bet, if things get out of control. For that reason, you have to have a margin in your account. When making the binary bet, the amount of risk is known as soon as the bet is placed.

In binary options, the action is much faster-paced and offers the opportunity - and a big one - to make a profit within a very short period of time, and this is not generally available with spread betting.

You can also get involved during a trading day in a wager on what the closing price will be. There are several different options to do that with, and again, they carry with them a limit on which you can lose. There is no need to do anything in the way of a Stop Loss when you are dealing with binary bets.

In binary options trading, prices are quoted on a scale between 0 and 100. If the event does indeed happen, the bet winds up being settled at 100. If it doesn't, it is at 0. That gives it an "all or nothing" feel to it.

Of course, there is something in between, which allows for the trader to get out of the wager before its expiration. And what's good about it is that the trader/bettor can profit on the movement that has been made up to that point.

Entry into the fray is much easier with binary options, because the minimum bet is very low and opening an account is extremely easy. It is literally something for anyone and everyone!