Binaries or in their full name binary options have become a popular form of financial trading in the past few years. Arriving in 2008 binaries have changed the concept of financial investing.By using new cutting edge technology binaries have managed to deliver a top notch trading system which allows traders to enjoy almost instant results.
Binary options allows a trader to submit a trade on almost any financial asset, predicting whether its price will rise or fall, the result is almost instant. Traders can pick different trading time frames from as short as 30 seconds and up to one year long, the profit to risk ratio is calculated as a direct result of your trading asset and trading features. Profits can reach up to 95% within just 5 minutes while risk remain on the high level of losing an entire trade.
For example a traders predicting “Apple” share price will rise in the next 5 minutes, the trader goes ahead and buys a Call binary option on (Apple) with an expiry time of 5 minutes. As the option expires if the real price of (Apple) traded in the New York Stock Exchange rises by even one pipe then the trader will have made a profit of 91% or in other words, if the trader put $100 on this bid he will have made $91 in just 5 minutes.
Binaries have becomea popular trading method especially after the 2008 crisis, traders were no longer willing to trust the traditional stock market and were looking for quick ways to make money. Looking for high returns traders have binary options as an alternative solution to traditional trading. While many were already using this systems other were gaining interest leading to ask various questions. At that time binaries were traded in a free unregulated market and one of the first issue to rise was whether binary options were legal.
The answer is bleary; the fact that binaries were traded in an unregulated manner didn’t mean they were not legal, however since 2013 several regulatory bodies around Europe had begun authorizing and legalizing binary options firms as pure investment firms. This now meant brokers were obliged to strict rules and supervision led by these authorities. This put an end to the question is binary options legal in Europe, however the situation in the United States is still unclear due to Federal laws enforced on online gaming companies in 2011.
US government has decided to classify binary options as a form of gaming rather than investing which led to a series of brokers operating in the US to shut down their business, leaving US trader looking for grey area solutions.
We predict the near future will also show a change in the US Federal admirations approach to binary options and will eventually lead to it becoming a legal form of trading all over the world. Binaries are a risky for of trading which suits a certain type of trader. Traders all over the world should have be able to enjoy this advanced trading system remembering its pros and cons