Binary Trading Is Not Betting, It’s Trading

In Blog by Michael Arnold

220x159_USD_EURBefore yesterday’s Super Bowl, you could have placed one or more of an endless number of what are called proposition bets or “prop bets” on the big game. Prop bets are simple yes or no bets. In most contexts, a prop bet denotes a bet made regarding the occurrence or non-occurrence during a game, not directly affecting the game’s final outcome. For example during yesterday’s Superbowl, you could have bet on:

Will Peyton Manning announce his retirement in the postgame interview?

Yes      +500  (5/1)
No        -1000 (1/10)
Will Peyton Manning be seen crying at any point during the entire broadcast?
Yes      +600  (6/1)
No        -1200 (1/12)
How many times will “dab” or “dabbing” be said by the announcers during the broadcast?
Over     2          (EVEN, 1/1)
Under   2          (-140, 5/7)
Will the Panthers player who scores their first TD give the football to a boy or girl?
Boy      -200 (1/2)
Girl       +150 (3/2)
How many times will the Golden Gate Bridge be shown during the broadcast?
Over     0.5        -300 (1/3)
Under   0.5        +200 (2/1)
How many times will “John Fox” be said during the broadcast?
Over     1          (-140, 5/7)
Under   1          (EVEN, 1/1)
How many times will Archie Manning be shown on TV during the broadcast?
Over     1.5        EVEN (1/1)
Under   1.5        -140    (5/7)
There was even a prop bet (at 1000/1) whether there would be an earthquake during the game (yes bet only).

These are yes/no propositions, so why are they different from binary options? Because trading is a profession, not a game and with the right disciple and time-tested method, you can move the probabilities in your favor. You don’t have to make a guess, with no data and no edge, like you would with what color shoes Beyoncé would wear during the halftime show (she wore black, which came in at 150/1). Binary options are limited risk/ limited reward trading products that, with the right analysis, can be trading safely and successfully at a CFTC regulated exchange. Prop bets are often called “fool’s bets”. It’s those same fools who think real trading is gambling, rather than a skill that takes time and comment to master. Binary trading is a great way for a beginner to become a pro. You are only a fool when you treat trading like gambling, by guessing, with no plan in place for your trading. If you’re going to do that, then just bet on the color Gatorade poured on the coach next year at Super bowl 51. Orange won in this year’s game at 125/1.

Futures, options and swaps trading involve risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results