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The History of Binary Options Trading

Binary options have been in existence for a long time, but they gained popularity in 2008. Before, there were only over-the-counter mainly on the stock exchange. In 2008, trading binary options were officially open and introduced to the public as an asset that could be traded on the Chicago Board exchange. At that time, it favored the ordinary and average trader who preferred to invest in binary options. The idea of options came about at a time when the financial markets were under crises due to the collapse of the whole financial system by the subprime mortgage crisis in the States.

However, in 2011 is when the online binary options trading began. MarketsWorld, an online financial betting and online binary options body paved the way for the trading by getting a license that permits it to operate legally. MarketsWorld was granted permission by Isle Man GSC, which is one of the most sought after online licensing and regulation regulators. It was not until it was licensed that it went ahead and launched a platform that supported the binary options trade. With MarketsWorld, traders are guaranteed the maximum and best payment rates of about 90% for each trade without commissions or hidden fees. On the contrary, to exchange-based options, a trader is not given the task of deciding the right time to sell the binary options because they are not transferable.

Binary options have evolved over the years. In the beginning, there were no regulators to manage the transactions, and binary options contracts were sold and bought over-the-counter on the floor of stock exchange. The lack of regulation did not go well with traders, some avoiding to make investments in the binary trade and referred to them as exotic tools. They felt that there was no separate liquid market for the options trading. Later on in 1973, the Chicago Board Options Exchange (CBOE) was formed and was responsible for regulating the dealings. Another cooperation was created in the United States known as the Options Clearing Corporation, which came up with rules and regulations that were to be applied when managing every seller. The body maintained that a known regulatory board must license every person with interest to deal with the binary options. In the case of any defilement of the rules, the traders can be suspended or even have their licenses annulled. These regulations policy and restrictions have given the operators the assurance of clean trading; therefore, they should trust the binary options to earn them the financial gain that they want.

After some years, there was the introduction of Fixed Returns Options, which is a type of binary options created by the New York Stock Exchange and the Chicago Board Options Exchange. These options contain continuous quotations that enable a fixed transaction to take place regarding pricing. It means that when the prices in the financial markets are going up or down, online binary options are traded on fixed odds returns. After that period that is when online trading began, as stated earlier. The transaction involves a contract the options company and a willing buyer and all the dealings are conducted on the internet. Unlike other businesses that follow the right path in acquiring the trading permission, others have opted to carry out transactions without the proper licensing when launching their platforms.

With the online trading, no intermediaries are needed, and so there are no additional fees or commissions to be paid, therefore, becoming more cost efficient as compared to over-the-counter kind of trading. As long as the binary options company operates legally, then it can easily monitor the financial market movements to determine when there are fair prices and returns. Licensing also ensures that the deposits and earnings are safe and secure. Therefore, dealers should be comfortable trusting that their money would yield huge returns.

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