Binary Option Trading

Binary Options trading is the form of trading where the trader is required to guess the trend of the option within the next 1(one) minute. If his prediction is correct then he/she is eligible for 40% to 60% profit on his/her prediction but if the prediction of trend is false or wrong then trader stands at 100% loss. So, the profit margin in binary options trading is between 40% to 60% but on the other hand, there is a 100% loss on the trade. 

A binary option is a type of derivative options trading where a trader place a bet on the price direction of an underlying currency pair in the near short future which is the next one (1) minute for a fixed amount of money. Dictionary meaning of ‘binary’ comprise moment which involves two or composed of two, in simple terms it can be expressed as true or false, yes or no or 0 and 1 i.e. there are two outcomes. Similarly in binary option, a trader has to place a bet on any-one options out of two options ‘buy or sell’ basis two definite outcomes whether an underlying asset price will rise i.e go up or fall i.e fall down in the near future, for which a trader will earn fixed amount if bet worked in his favour and lose in case bet won't work in his favour.

Nowadays we see a various advertisement online for Binary Options Trading, where a person tells how he or she made a fortune out of binary options trading. Before using applications dedicated to binary options trading like IQ Option, Binomo, binary.com etc his or her life was very miserable( not able to meet expenses, depressed, cannot fulfil his desires, relationship troubles due to money problems) but after using the binary options there is 100% transformation in his or her lifestyle; now he can buy an expensive car, latest apple mobile phone, able to travel to a dream destination, his bank balance skyrocketed in short that individual after using these platform became a billionaire or millionaire. This is absolutely false and not true, companies indulge in BINARY OPTIONS trading PAY people to promote their platform.

In INDIA the trading bodies are recognised by NSE(National Stock Exchange), BSE(Bombay Stock Exchange), MCX and NCDEX  and Binary options are not recognised by any of these bodies hence illegal in India.  The European Securities and Markets Authority (ESMA) has conjointly illegal retail binary choices commercialism. It considered as gambling and prohibited in India. It involves two parties in the exchange of binary trade first the Retail Trader(individual investors like you and me) and the second party is a broker. The head office of this exchange is located outside the country where there is less regulation related to the trading of such types of exchange. In India SEBI, a regulatory body governing the financial and derivative market doesn't allow binary options on regulated derivative exchanges and they are illegal.

Trading via online brokers in Foreign Currency might result in the violation under FEMA(Foreign Exchange Management Act). Any form of betting or gambling and transferring money for the lottery, sweepstakes (which covers these binary options/betting under the technical definition is illegal under FEMA ). These binary options trading companies are unregulated bodies of the brokers which makes it harder to take any legal action against them in case of any conflict and disagreement between the parties involved in trading. Thus, for Indian traders who wish to trade binary options, they must consider the fact that trading with an international broker without the permission of the Indian regulatory body which is SEBI is against the law. Additionally, the FEMA has made illegal binary trading and forex trading in India if traded through an electronic or online brokerage service.

Deposits related to Binary Options Trading

In the case of depositing funds, traders in India do not have the power to make international payments through the use of debit cards and credit cards due to RBI regulations. In India because of the restrictions placed on the outflow of the Indian currency by the RBI, traders have to specify or provide a legitimate reason why they are transferring money out of the country. However, one can deposit money using money bookers like Skrill, Paypal, Neteller and Web Money.

HOW TO MAKE MONEY THROUGH TRADING LEGALLY?

To make money via trading legally one can open a Demat Account with registered broking firm in the country. There are various broking firms like Prudent Broking. These firms trade-in options and derivatives recognised by NSE(National Stock Exchange), BSE(Bombay Stock Exchange), MCX and NCDEX. The brokers associated with the firm are certified and registered with SEBI. The company is registered within the country and have a regional office in various cities. One can also trade in Currency pairs like in Binary Options though this company.

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