Binary Options is one of the most effective trading tools on the stock exchange. An option is a contract that gives the right to buy or sell an asset for a pre-agreed price at a certain point in time. Option trading is very popular due to the high profitability of operations and besides it often helps newcomers to settle down in the financial market. However, Option Trading has always been associated with the complexity of operations and the lack of guaranteed profits.
Back in 1973
Trading binary options dates back to 1973. Chicago Board of Trade introduced its development, which first allowed traders to use options. This industry started working in full force only in 2008, there was a great opportunity to use the stock trading for people who were interested in profitable investments of small amounts but yet still far from trading on stock exchanges.
Making correct predictions about the rising or falling, watching the movements of asset prices, developing their own strategies for working with options, pioneers paved the way for beginners and everyone who was interested.
After the Chicago Board of Trade has developed rules and regulations of options trading, Option Clearing Company in turn developed the rules of the trading platform, where under the trading assets only their purchase or sale is meant.
The undeniable advantage of the new trading platform was the lack of shady transactions and, as a consequence, equal terms for all traders which allowed predicting the price.
This type of stock trading was previously known to many traders, but it could be used only by a few of them. With the proliferation of information technology and the advent of the internet-platforms for binary options trading this profitable exchange instrument can be used by any trader.
First option trading was available only for small brokerage firms, but over time it became available for private investors.
Growing Popularity And The Army Of Customers
Becoming available for public use options trading quickly won the American market.
High income and predictable risks, it is due to these qualities options trading has won the hearts of many traders.
During the development of new forms of commerce, only a few could use it just because the trading platform had a short-term nature and the traders had to take into account many different economic factors affecting the outcome of the transaction. Each transaction had a lot of options of an outcome so it did not guarantee the desired profit.
But in the year 2008 the history of binary options reached a new level. Options trading has evolved and adopted a more perfect form, thus surpassing its competitors in other types of trading. Shortcomings of the past were excluded and a new type of options trading was called “binary options”.
Brokers began to fight for customers, actively developing their potential in the following areas:
- variety of financial instruments provided for traders’ use;
- quality of service and the work of support services;
- development of information security including analytical programs;
- safety, reliability and business reputation of the broker.
At the conclusion of option transactions there are only two possible outcomes of an option that a trader can set prior to its opening.
Binary Options Today
New trade tool on exchanges rapidly began to develop a new audience as befits a high-quality product. And with the advent of the Internet it has become more affordable. The result is that Europe has passed optional fever.
To date Binary Options are considered to be the best short-term investments, which are used by investors to get good returns with minimal risk.
That’s all for now. Got any questions? Just ask the expert!