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Are binary options legal?

It has been several years that we see binary options around as private over the counter deals. For the first time, these options were introduced to the general public, back in year 2008. That was the time when brokers actually started offering the deals online. If we look today, then the fact is that there are several of brokers available that specialize in such exotic options. Most of these are usually located in the offshore places like British Virgin Islands and Cyprus etc.

So now the question arises is that, are binary options legal? Well, just like several other legal subjects, answer to this question is not simple. Most of the brokers dealing do so in the locations that our out of the jurisdiction of the securities regulators. There are some of them who operate under the gaming casino license. Governmental authorities are trying their level best to formalize these practices related to binary options and bring them under the jurisdiction. In United States there has been a new broker that is called NADEX. This firm is fully regulated by the Futures Trading Commission and Commodities. It is a US government agency that is just like the Securities and Exchange Commission. As binary options trading are new, hence it takes time to see and understand how the regulatory environment actually works. It will be very true to say that it is very much fair that legal trends are towards fully regulated firms that offer exotic options investment opportunities for the clients willing to earn profit within just any jurisdiction.

Though we hear so much good and attractive about the binary options, let us have a look at the bad side of these investment plans too. First of all, binary options investment is not a traditional investment plan. Some of the people say that it is a kind of gambling. It resembles the red / black wheel analogy. When you buy a binary option contract then either it will win or lose at some point in time. It depends on the expiration time of the deal. Most of the options brokers recommend it to be 60 seconds contract. A fair assessment would be that it is nothing more than an elaborated gambling scheme. Similar unlike the traditional investment schemes, these binary options do not have any leverage. You cannot exercise options with these types of options. Therefore you reserve no right to the underlying asset. The option is brought to use to generate income for the holder. With binary options there is no liquidity and no marketplace to sell the unexpired contracts.

These are certain main points that one should know before getting in to the investment practically. If you want to know more details, then it is highly suggested to visit the online resources. There are several websites that are educating people about the binary options. One such name is Integra Options. They are the financial experts who are well aware of educating people about the binary options in a way that they will be able to earn profit with them. Visit the site i.e. http://www.integraoption.com/ for more details.


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