THE HOT WINDOW
History of Binary Options
When did Binary Options first appear
Everything has a beginning and binary option trading is no different. With this magnificent industry seeing its rise in the year 2008, many financial geniuses and regular old Joes, who had not the slightest idea what trading was, have made a fortune following assets’ behavior and predicting on the direction that a certain asset price will take. This industry that gives you the opportunity to trade using two options, a call and a put, has a rich history. Although the rule that allowed for binary trading to be done in the main market was passed in 2008, binary options trading was made possible in 1973 when the CBOE, the Chicago Board of Trade, designed this particular platform that presented traders with options.
If you have been following the binary options trade, you would have come to realize that this trading platform is of a short-term nature. In the earlier days, binary options were done over the counter like most other trading but with the advancement in technology, there is now something known as digital options. The digital options are the same as binary options trading; however, as the name suggests, digital options is done online and make options trading so much more fun and exciting.
Binary options and its road to success
In the past there were no documented rules or regulations as to how traders could operate but with the help of the CBOE, this was all changed. With the CBOE being the largest trading platform and the very first one created, there have been numerous other platforms and the North America Derivatives Exchange, NADEX is one such trading ground.
With the help of CBOE, binary trading has been transformed into a reliable trading platform and with the rules that have been installed by the Options Clearing Corporation, OCC, traders can only buy and sell assets that they say they are trading on. There are no backdoor deals and all traders have a fair chance at predicting and therefore winning on this platform. The rules that have been set will lead to a ban from the trading platform if they are broken.
Binary options since the year 2008 have become an amazing platform for the gaming industry and as a financial trading ground. As one of the most popular financial platforms in the world, binary options as was mentioned before have gotten government taxes and regulations in order for it to operate and facilitate traders from all over the world.
Historically, trading platforms allowed traders to buy assets based on what they think they will be worth in the distant future. A trader would need to buy a contract on that particular asset and wait for the expiration date to come to fruition. This expiration date could be months in the future or simply a few weeks. With binary options being done online, you are now able to trade without getting a contract and you can do it wherever you are in the world.
While binary options was described in the past as a platform for beginners, seasoned traders are now using this platform to trade due to its immense popularity and great payouts.
Keep this in mind before trading: Research the market and ensure that you are trading on a reputable platform; on an asset that you have been following.
If you feel you are ready to trade go to our brokers list where you can choose from numerous trading platforms.
Check our comprehensive education section.