When it comes to binary options trading there are a few things that you have to know. In case you are investor and you want to start trading with binary options, then you should probably understand the basics of this trading. In binary options you will be allowed to predict the direction of the price movements of different assets. Generally there are 2 types of outcome – you are either in-the-money or –out-of-the-money. Binary options are also known by the name of digital options or fixed returns options.
Binary options started gaining popularity back in 2008. Formerly they were traded OTC which means over the counter, therefore there were no regulations at the beginning. One of the first trading environments that gave a good start of the binary options was the Chicago Board Options Exchange. Later it was the first that started regulating this type of trading. Once this was done the binary options trading started gaining popularity and became even more reliable.
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Later another body, called Options Clearing Co-Operation (OCC) joined “the game” and it ensured that people who wanted to trade with binary options were able to sell and buy whatever they want. Thanks to the OCC lots of regulations and rules were set and therefore people were forced to stick with them, otherwise they were temporary banned or faced penalties.
And since it started on over the counter basis, up until 2008 almost nobody was aware of this type of trading. However, this changed when the OCC proposed that binary options should increase their popularity and be introduced to the publicity.
Thanks to the approval, the binary options were officially introduced in May 2008 and ever since then they started gaining huge popularity among people all over the world. The binary options were courtesy of the ASE, after which the CBOE also joined them and offered publicity. This happened in June 2008. Even though, many people were not really familiar with the whole system and this is why different tools had to be introduced that will make the whole trading process easier and more understandable and transparent.
Nowadays there are lots of brokers that entered into the binary options trading and now people who want to deal with such trading can seamlessly choose between lots of different brokers offering various benefits. Ever since 2008 the binary options made their way through the top simply because there are millions of people these days trading on binary options platforms.
There are many advantages of the online trading of binary options such as availability, flexibility, reduced risks, contract options, available strategies, price implications and many more. Not to mention the fact that if you make a research on internet you will be able to find lots of feedback on different brokers as well as differently developed strategies.