Differences Between Binary Options Trading and Sports Betting

Recently, I wrote an article on what do sports betting and binary options trading have in common, talking about the numerous similarities and connections between trading on binaries and sports betting.  Both binary options trading and sports wagering are activities involving risk.  Both can be done online, and both have relatively low entry barriers.  If you treat either casually, you will gamble irresponsibly and almost certainly lose money (not a big deal if you are just doing this for fun).  If you take either seriously, you can win big and often, and maybe even make a living at it.  But what makes these worlds distinct?  I want to outline some important differences.  That way if you are making the jump in either direction, you will be less surprised.

• Bonuses.  There are match bonuses for sign-ups at both UK betting sites online and binary options broker sites.  The binary options bonuses are typically much bigger, however.  While this may sound like a plus, it is not.  The reason is that it is much harder to actually meet the turnover requirement, and this can interfere with withdrawals, so read the fine print carefully before you accept one.

• Different types of analysis.  If you are used to betting on sports, odds are your analysis involves looking at a lot of historical information presented in a qualitative format.  With binary options trading, the closest equivalent would probably be fundamental economic analysis.  Technical analysis and price action are probably quite unfamiliar to you.  You still may do well with either, but there is a lot of new material to learn.  No matter what type of analysis you use, you will be dealing with strategies that are vastly different from anything you use to bet on sports.

• Brokers.  When you bet on binary options, you need to choose a “broker.”  This is the equivalent to your online betting site.  The thing to know here is that not all brokers are reputable.  Of course, that is not the case for online betting sites either, but there are far more reputable UK betting sites as a percentage than binary options brokers.  In fact, the vast majority of binary options brokers are untrustworthy, so you really have to do your research before sending someone your money.

• Other traders are often helpful.  I have noticed that on the whole, the online trading community is far more welcoming, friendly, and generous than the online sports betting community.  You will likely have an easier time getting others to share strategies with you as a binary options trader than you do as a sports bettor. 

There are of course numerous differences beyond these.  The types of trades you place as a binary options trader will be very different than the wagers you place as a sports punter, though many are analogous.  If you do decide to give it a try, just keep all the similarities and differences in mind.  This will help you to prepare for the transition.