The History of Binary Options Trading – Infographic

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Binary options trading business is seen as a relatively new opportunity for those who like to invest and speculate on the stock markets. However, the concept has actually been around for several decades. It was the first organization to monitor option trading and is now the largest. It was created in direct response to the lack of regulations and the free for all which was developing by traders and brokers.

As with anything the passing of time has led to an improvement in the regulations and there was even an additional body, known as the Options Clearing Corporation OCC created, specifically to monitor the buying and selling of assets.

They not only ensure brokers and traders conform to regulations, they also have the power to impose heavy fines and bans when necessary. The first binary options were only an option for the wealthiest individuals; it was and history of binary options trading direct response to this that the OCC allowed binary options to be traded on the stock exchange. This was approved by the US Securities and Exchange Commission in and the concept of binary trading, in foreign and domestic markets became possible.

The American Stock Exchange started to allow binary options in the same year and became the first international exchange to do so. The ease of access to the internet, combined with a range of new tools and dedicated platforms, quickly made it possible for almost anyone to trade in binary options.

The result was a rapid growth in this type of trading. The same period saw a growth in the types of options, contract types, assets types and even the range of contract times. The internet made it possible to trade in very short time frames, as well as the more traditional longer frame. In turn this has opened up the marketplace and allowed a host of brokers to emerge offering their services. By there was a mini revolution in the industry which ensured that binary trading was more user friendly.

There were a string of changes to the risks and rewards, which has resulted in the binary options trade possible today. The advancement of mobile platforms has also made and history of binary options trading possible for anyone to trade in binary options no matter where they are in the world. Modern society has now embraced this type of trading as they recognize the potential in its flexibility, ease of use and the ability to always know your maximum profit and loss figure.

All of this can be achieved with a far lower deposit than it requires to start trading on the main stock exchange. Providing you adopt a cautious and educated approach it is possible to gradually increase your profits whilst reducing your risk; all with the aid of binary options. There and history of binary options trading a wealth of opportunities within a few clicks of your mouse; it is this which has made it possible for anyone to understand and trade in binary options; eve from the comfort of their own home.

There is still a certain amount of distrust in the binary options market. Despite the image of Cyprus as an unregulated, small country, these regulations are backed by the European Union and conform to the strict financial guidelines of the Union.

The main reason that Cyprus is a desirable base for a binary option broker is to give them a professional edge by voluntarily registering and because Cyprus has one of the lowest corporate tax rates in the world. It is also the best alternative to the heavily regulated and taxed American marketplace. The regulations in force in Cyprus are as good as any in the And history of binary options trading or Germany as they must all conform to the same regulatory framework; the law which applies to one country in the European Union applies to all.

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The word binary means to have just two possible and history of binary options trading this is true whe Binary Options Guide Binary options are a relatively new type of investment vehicle and are often seen as exotic as they have a mysterious allure to them. In fact, they are relatively simple to unde Binary Option Auto Trading Review.

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The history of binary options can be traced to when it was first introduced publicly as a tradable asset on the Chicago Board of Exchange CBOE. That was the year that the cards came crashing in the financial markets, as the subprime mortgage crisis in the US triggered the collapse of Bear Stearns and Lehman Brothers, and subsequently the global financial system. With such a situation that cost many everyday investors all over the world a lot of money, there was a lot of pressure for investments with a lower risk profile to be made available to traders.

This was what led to the entrance of binary options trading as a new form of investment for the average trader. Even though binary options gained mainstream popularity in , it has actually been around for quite some time. In years gone by, binary options were a semi-official investment product, open only to banks, other institutional and high net-worth investors in the Over-the-Counter OTC markets. In essence, the situation with binary options was not much different from what obtained with forex trading prior to when that market was deregulated.

In order to understand when the practice of trading binary options actually started, we would have to go back almost 40 years, to when options trading on financial instruments commenced on the newly created CBOE. These early days were difficult as the regulatory framework for trading options were not yet developed.

Over the years, binary options trading evolved as a less complicated way of trading options. They were still offered as part of larger and more complex contracts, and as mentioned earlier, there was no regulation whatsoever for binary options. There was still no separate liquid market for trading binary options. These conditions existed until By this time, the subprime mortgage crisis had begun to play out with the collapse of real estate prices.

The Options Clearing Committee OCC , which had been created in the early 70s to develop the regulatory framework for the options markets, proposed changes that would see binary options elevated to the status of a financial asset that could be traded on its own in the major exchanges.

By early , the US Securities and Exchange Commission SEC accepted the recommendations of the OCC and made it legal for binary options to be offered on major exchanges as a stand-alone, tradable financial instrument. The advances in information technology which has seen the advent of trading software that have been deployed for online use as well as mobile versions of the trading platforms, have seen an explosion of binary options trading.

There is a lot more flexibility now. No longer are traders restricted in terms of where to trade or the type of options to trade. Traders can now trade both call and put binary option types , trade a plethora of financial assets across several markets, and can now trade binary options on the go with their smartphones.

In addition, many more trade varieties have evolved, with traders now being able to trade binary options in three different ways. Recently, a few brokers such as Optionfair. This is something that had been traditionally absent with binary options trading. With more brokers and vendors coming up with products for the binary options markets, the true beneficiaries are none other than the traders, who now have better options when it comes to binary options trading.

With the blazing speed at which technological innovations have come on stream in the last 5 years beginning with the iPhone, one can only imagine what the future would hold. One thing is sure; if this blog were to rewrite this article in the next 5 years, there would be a lot more to say about the history of binary options trading.