Here are a few of my own thoughts on the evolving financial betting market and the use of binary options. Our current economic environment has given birth to countless new gaming sites. Following on from this, a new segment of financial markets has been born.
The evolution: Game of chance -> Skill Games -> Financial Betting aka binary options.
Online Financial Gaming Background:
Online gaming is a fast-growing industry. Online gaming gross yields
are expected to reach $20 Billion by 2010. Initial online gaming
activity began with Online Casino operators, who used digit generators
to provide games of chance to the player, but online gaming has since
evolved. Now players can play skill-based games against each other on
international financial markets and also benefit through payoffs which
are determined by movements in various financial instruments.
Increasingly, we are seeing the emergence of financial gaming as a new,
distinct segment in this market.
Binary Options
From five minute NASDAQ bets offered by online bookmakers to hourly
Forex bets traded around the clock, binary options are the latest craze
to hit the gaming industry. Just like spread betting, binary betting
allows you to take a view on whether a market is going to go up or
down. The key difference and advantage is that from the outset you know
your maximum loss and maximum gain. Binary options tend to be very
short-term investment products, and most typically expire during a
given trading period.
With such a simplified product, you can bet on movements in an
ever-widening range of assets: Individual shares, equity indices,
commodities and exchange rates. This simplified approach provides a new
and exciting way to trade across the financial markets.
Why binaries?
The financial online gaming segment is attractive for the gaming industry because:
• The player’s high level of interest in financial markets due to current economic uncertainty
• It utilizes a unique mix of entertainment, skill and knowledge from the player
• Any financial loss is known and limited, unlike in Forex or other leveraged trading
• Financial gaming is culturally accepted more that typical online gaming products
• There are high levels of profitability for the player.
Financial gaming involves prediction on real markets and real events that are happening in real life and all can be valued at some point (at expiry); as opposed to game of chance that is based on randomly-generated numbers.
• Games of Chance: A game of chance is a game whose outcome is strongly influenced by some randomizing device and upon which contestants frequently wager money. Devices used include dice, playing cards, roulette wheels or numbered balls drawn from a container.
• Skill Games: Skill-based games allow users to compete for money however their outcomes are based on skill rather than chance.
• Financial betting: refers to the wagering on the
price development of a financial instrument at some later date relative
to the current price or level of the instrument, against odds offered
by a bookmaker.
- A look at the financial betting evolution
This analysis brought to you by: Yoni Avital, Chief Executive Officer of SimmplyBullish a software developer to the global Internet financial trading / gaming market, has developed proprietary binary trading platform with unique algorithms and architecture which allows partners easy integration for both technology licensing and white label solutions.
Refrences:
Binary Options book by Hamish Raw
Wikipedia - Financial betting
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