The term binary option is being discussed after one of the platforms that uses the Binomo instrument is detrimental to many people.
In binary options, the main activity is to guess the price in a short time. Thus, losses will come if the trader guesses wrong.
The main activity in binary options is guessing the price, going up or down in a short time. Why in such a short time? Because the shorter the time, the higher the level of risk and the level of difficulty. That way traders can lose more often and lose capital. If your guess is right, you can get 80% profit. But if it's wrong, your capital will immediately lose 100%.
The binary options scheme is intentionally made that way so that when a trader wins or loses, the binary platform can still profit. In addition, binary options are also considered detrimental because there are no assets that can be obtained by traders. This is because the market in binary options is not a real market, but is regulated by the market maker.
There are no assets that you can get. Price movements in binary options are not real markets, but are fully controlled by binary platforms driven by market makers.
The market makers can at will make prices go up or down depending on their interests, namely to get money from traders' losses. This scheme makes binary options similar to online gambling.
They can like they want to increase or decrease the price according to their interests. What are their main interests? Get as much money as possible from your losses. If this is the case, can you still say that binary options are not gambling?
Some information about binary options that are not regulated For the safety of funds, regulation is one of the most important aspects. Leverage and price spreads do not exist in binary options.
Furthermore, binary options have also been banned in various countries, especially in Europe. The reason is none other than the many risks that await such as difficult refunds, identity theft, and software manipulation so that traders continue to lose. In addition, binary options were under the gambling commission before being banned in the UK in 2012.
Lastly, binary options tend to be more like speculation than investment. The risks faced are even more extreme than trading stocks, crypto, or forex.