What is Binary Options Trading?
Binary options are actually very simple to understand, making them a popular choice for beginner traders. One of the most commonly traded instrument is a fixed-return or high-low or otherwise known as an option that provides access to various financial instrurments. This can be in the form of stocks, indices, commodities and foreign exchange.
These set of options have a clearly-stated expiration date, time and price known as the strike price. If a trader wagers correctly on the market’s direction and price at the time of expiration, the trader is then paid a fixed return regardless of how much the instrument has moved since the transaction, while an incorrect wager loses the original investment.
A binary options trader buys a call when bullish on a stock, index, commodity or currency pair, or a put on the same type of financial instruments when bearish. For a call to make money, the market must trade above the strike price at the expiration time. For a put to make money, the market must trade below the strike price at the expiration time.
The strike price, expiration date or time, payout and risk are disclosed by the broker when the trade is first established. For most high-low binary options traded, the strike price is the current price of the underlying financial product. Therefore, the trader is essentially wagering whether the price on the expiration date or time will be higher or lower than the current price it is at.
In India it is legal to trade forex with Indian Exchanges such as the like NSE (National Stock Exchange of India Limited), BSE (Bombay Stock Exchange), MCX-SX (Metropolitan Stock Exchange of India Limited) where these exchanges currently offer 4 pairs (USD/INR, JPY/INR, GBP/INR, EUR/INR) in Derivatives (Futures and Options Segment). So if you are trading with Indian Brokers whom have membership with the above mentioned Indian Exchanges it is perfectly legal.
However when it comes to other financial derivatives such as various other currency pairs – USD/JPY, GBP/USD, USD/CAD which are amongst the most traded forex currencies in the global market, as local Indian brokers do not deal with them, they are as such inaccessible to Indians. Various other instruments that can most definately grow one’s wealth such as binary options trading, margin trading, CFDs (Contract for Differences) and others are also not offered by local Indian brokers.
However one way to circumvent this gray area is by using other reputable global brokers such as IQ Options or 24 Options who are regulated and as such accountable brokers. They offer the means for Indian citizens to access the global financial markets by using their own platforms. As these are brokers who are regulated in the European Union (EU) for example and are open to accept worldwide traders, Indian traders can use them to open an account and once the verification process is complete can trade with them successfully.
Withdrawals and deposits are also taken care of using various digital wallet services accessible in India such as Skrill or Neteller and the use of credit or debit card. Numerous Indian traders are currently using these platforms with no problems and are earning a significant income doing so, with the amount of access that is now easily available.
Here are the TOP 5 detailed list of brokers you can use to trade binary options and various other financial instruments if you’re based in India successfully :