Binary options are one of the most popular types of online trading. They became popular in the past few years because of the simplicity of the concept and the ease of use. People tend to think that binary options are a new product based on new technologies which enabled quick and simple trading, but they are often wrong. Binary options have been around for many years now. Here we will shed some light on the beginnings of binary options trading.
Average trader got to know himself with the concept of binary options in the year 2008 when the US Securities and Exchange Commission gave the approval for exchange trading. Binary options have expanded exponentially since then. However, the idea of binary options trading was around much earlier. Back then, these forms of trading were available only to the largest institutional traders. These traders could access this type of trading through the over-the-counter market. As you can see, only the trades with the deepest pockets could participate in binary options trading.
It was 2007 when the Options Clearing Commission gave the green light and advised for binary options trading made available to the public. The SEC above later allowed binary options as an investment instrument. Soon enough, the Chicago Board Options Exchange offered binary options to the wide audience.
At the initial stages, binary options were still a bit complicated and foreign to retail traders. At first, only the call option was available to trade, but later on, two main reasons influenced the boom of binary options trading. One of them was the wider selection of binary options types offered, and the other were great improvements of the software. The whole concept of binary trading was thus made simple and approachable. Also, binary trading made its way into forex trading and, soon enough, became extremely popular.
Binary options today
Nowadays, binary options are a well-developed and advanced trading platform. They offer the possibility to choose the amount of money you wish to invest, as well as to know the strike price and the expiration period in advance. Insurance is also on the table because you can purchase a policy to insure a lower payout percentage. In exchange, the trader loses only a fraction of his investment if the option does not turn to be a success when the expiration period arrives.
Another good thing about binary option is the fact they offer trading many different types of assets, ranging from commodities to stock and currency. Contracts are also available in many different forms and expiration periods may last from mere minutes to weeks and even years. Some hedge funds concentrate exclusively on binary options.Before, binary options were only accessible to specialized brokers. Nowadays, there are many reliable platforms for online binary trading, one of them being Millionaire Blueprint. Our prediction is that binary options trading will continue to grow in the future and attract an even greater number of traders.