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Binary Options Trading Regulation | Binary Trading
1-11-2022, 23:14 | Автор: LeliaSeymore | Категория: Клипарт
Different countries face various issues when classifying binary options trading, specifically whether to regard it as a financial instrument or as a form of gambling. In the end, they have considered some binary options brokers as legitimate financial brokers who are subject to regulation. In other words, governments have given binary options brokers the choice to open up and be regulated, so that brokers can be considered as credible, or keep their operations a secret, and be considered as gambling entities and perhaps be subject to their disadvantages, such as higher taxes.

This type of the binary options is similar to One Touch options, but the difference is that an option doesn’t close in case the price touches the required level; it closes at the moment of expiration. The maximum term of the 0-100 binary options is 30 minutes. One more important and major difference from other types of binary options lies in profit calculation.

They are Ministry of Economy Planning, The Central Bank of the UAE and the Emirates Securities and Commodities Authority, to name the most important ones.There are various benefits that make binary options brokers from this region attractive to choose over others. Firstly, UAE market has experienced some major fluctuations over the past year. This, contrary to what some believe, is a huge plus for risky players. The market is perfect for experienced traders who are ready to take advantage of this extraordinary market.

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Binary options are a type of exotic option that, while rare in the United States, trade commonly on foreign exchanges. The premise of a binary option is simple: the investor chooses their target price and waits. When the expiration date arrives, the option is either in the money or out of the money depending on which side of the target price the current price is. There are only two outcomes: hence the name, binary.

The Dubai market has an enormous potential for all binary options traders. Funded in 2000, it has 57 companies listed with a majority based in UAE. Dubai Financial Services Authority (DFSA) is the institution responsible for monitoring The Dubai International Financial Center, and the rest of the UAE is regulated by various authorities.

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Malta’s Financial Services Authority announced in March 2013 that binary options regulation would be transferred away from Malta’s Lottery and Gaming Authority. Three months later, the Financial Services Authority confirmed their view of binary options as falling under the scope of the MiFID, making it the second to do so.

In 2013, however, issues started to come out as CySEC battled but prevailed over disreputable binary options brokers, as it intensively implemented programs that communicate with traders and prevent them from taking the risk of using unregulated financial services. In September 2013, CySEC sent out a press release warning investors against TraderXP, stating that the binary options broker is unlicensed. A month later, a same press release came out warning investors against NRG Capital (CY). More binary options brokers were sanctioned by the group, including Cedar Finance, PlanetOption, LBinary, ZoomTrader, OptionBravo, and ChargeXP.

It doesn’t matter how central or how peripheral to the system a parameter may be, it’s the trader who sets it. You choose: Which assets you’re going to trade (though no binary options trader should ever forget that there is no underlying asset to her or his bet – something regulatory bodies would have as a caveat on every trade); The permitted number of simultaneous trades; How much to bet on each trade; and Which indicators to use.

Despite the popularity of binary options trading during the last few years, many investors are still hesitant to invest in this market because of issues and concerns regarding the regulations and security pertaining to the market instrument. This heightened sense of consciousness is partly due to the level of trust that traders put in financial markets. In the light of different financial scandals and crises that happened in the world, primarily in the US — the most tightly regulated market in the world, we really can’t blame the investors for being too careful. Nevertheless, many negative perceptions in the market about binary options trading are largely due to the lack of understanding on the way this market instrument works.
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