Post
Topic
Board Gambling discussion
Re: Digital options - Gambling or trading?
by
maydna
on 10/04/2019, 03:27:28 UTC
digital options is a type of gambling but then again what isn't?

According to this:

Digital Options Definition

Quote
What is a digital option? A digital option is a type of option that offers the opportunity of a fixed payout if the underlying market price exceeds a pre-determined limit, called the strike price. Digital options allow traders to profit from correct predictions on the future price of an asset.

We only need to predict where the price moves, is it up or down and then we place the trade. And if the trend is up and we place the uptrend, then we are making a profit, but it depends on how much price we want to close the order. I think it's almost similar to leverage trading, but I do not quite understand the difference.

But digital options can be gambling if we don't have analysis to know where will the price moves. As long as we can calculate the chance for the price up or down, we can make the analysis, and we can predicting the trends base on the market, I think that still trading. It will be back on how we can manage the money we use in digital options, trading, or gambling, so we know how bigger money we are trying to risk.