About Top Binary Option
In the world of financial trading there are so many topoption to choose from, it is important to distinguish between being able to trade and being able to trade well. In the case of the former, one doesn’t have to have expert knowledge in order to know how to execute a trade. However, it is a different matter entirely for the latter case as it is an ongoing process in which a trader must continuously pick up new skills to help him to advance further with his trading.
When binary options trading was first introduced on the Chicago Board of Exchange (CBOE), online financial traders began to start paying attention to this new way of trading the financial markets. In fact, many retail traders who were initially into spot Forex trading, began to switch to trading binary options. There were several reasons for this switch to this new alternative financial instrument.
In our app we will cover the Top Binary Option Sites: AnyOption, CopyOp, 24Option, TopOption, OptionRally, StockPair and more...
It is common knowledge among the binary options trading community that binary options contracts as they knew it were first introduced on the American Stock Exchange (Amex) and the Chicago Board Options Exchange (CBOE) in 2008. However the fact of the matter is that the existence of binary options actually goes back to the 1980s. The insurance industry developed a high customized form of binary options to insure against risks in the property market to protect themselves from claims that resulted from natural catastrophes such as hurricanes. Since this form of derivative was customized specifically for the insurance industry, they were not traded openly. Later, other industries began to adopt this type of derivative to hedge against the risk of total loss resulting from a trigger event.
Soon this type of derivative contracts began to evolve into a more complex form whose value was derived from an underlying asset openly traded in the financial markets by the banking industry and hedge funds. Since the market for these types of derivatives were confined to a selected self regulating group, there wasn’t any really any need for regulations to govern the trading of these instruments. It was only in 2007 that the regulations of binary options trading began to play a more important role when the U.S Securities and Exchange Commission (SEC) granted its approval for binary options to be traded on the Exchanges. Hence in 2008, binary options were listed on AMEX and CBOE to be traded as a type of exotic options.
Nowadays, binary options trading has gone beyond just trading High/Low options. Like we saw earlier, binary traders today have a wide choice of contracts to trade with. For example, those who want fast paced action can trade with 60 second options whose expiry time last for only a minute. For those who want something with higher risk and hence higher returns, they can trade with One-touch options. This type of option gives the binary trader the chance to earn returns as high as 500%. Apart from having a variety of option contracts to trade with, binary traders can now also trade in a wide range of underlying assets sourced from all over the world.