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Most of them feel they have an edge because they can read technical charts, but ignore that short-time price movements are completely random and have nothing to do with technical analysis. The odds of the future price being above the current price in a fixed period of time is always a 50 chance, and thus trading binary options is actually gambling.

Binary Options can be used as insurance to hedge actual positions in other assets, like gold, silver or stocks, for example. But make no mistake, trading binary options without an underlying trading strategy is gambling.