Financial Gaming: The Evolution of the gaming industry
Financial Gaming Overview
The evolution: Game of chance -> Skill Games -> Financial Betting aka financial gaming – >binary options.
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 financial gaming sites. Following on from this, a new segment of financial markets has been born.
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 in a new form called “Financial Gaming”. 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 trade binary options?
The financial 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 Gaming also called Financial Betting Odds: 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.
This analysis brought to you by: Yoni Avital, Chief Executive Officer of TradeSmarter Holdings, 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
Wiki – Binary Options Trading
