Binary Betting
Binary betting is a form of gambling that could be used as an alternative to the regular day trading. Such a betting has fixed odds and there are only two possible outcomes and the maximum expected profit or losses are known before hand. These binary bets could be placed on the same markets as the ones used for regular day trading.
A few of the financial historians trace the origins of binary betting back to the United States as well as the unregulated ‘bucket shops’ in the beginning of the twentieth century. A businessman called Stuart Wheeler came up with the idea to give bettors an opportunity to bet on the price of gold. This process is also known as ‘spread betting’ and does not involve buying or selling of the actual physical commodity from the market. When it comes to the trading markets, it actually helps the newer generation of bettors to have a position in the market, without going through the traditional barriers.
Advantages
Binary betting is considered to be gambling and in some countries such as United Kingdom, all the gambling profits are not taxed as capital gains or income. This would allow the traders to make significant profits from their respective markets without having to incur any of the tax liabilities.
Disadvantages
There is a drawback when it comes to the tax advantages of binary betting. The US traders are restricted from using such a form of gambling by the government of United States. Therefore US players are not allowed to set up any binary betting accounts and may perhaps have problems looking for a binary betting company that would accept them.
Since binary betting is a form of gambling, it is also offered by bookmakers instead of day-trading brokerages and therefore it is often not subjected to usual trading regulations. Such a situation means that binary betting could be subject to fixed pricing and many a times, the prices might be different from the exchange.
Tags: Betting, Binary Betting
