Analyzing the situation on the global financial market that has developed over the past decade, we can highlight several of the most important points associated with this process.

• Significantly increased the monthly number of transactions.

• Online trading has firmly taken a leading position in its category, both in attracting new users and in terms of investment and cash flow.

• There are new types of financial instruments, as well as means of payment, which successfully supplant traditional fiat money.

• Significantly increased interest in financial robots, various analysis methods that allow you to prepare forecasts for trading assets of interest.

• The number of traders without an economic education and relevant experience has increased.

This list can be continued further, but to study the main topic of this review, the above information is sufficient.

 

binary options only for professional traders

 

The main stages of the creation and development of binary options

Familiarity with any financial instrument must begin with the history of its creation. In this case, we can say that the “progenitor” of modern binary options (BO) are transactions for the purchase / sale of tulip bulbs of the future crop (17th century, Holland). Later, the instruments presented were used to carry out operations with securities, and in the 70s. of the last century, the Chicago Option Exchange was created, regulating the rules for the use of BOs. And only in 2008-2009. binary options become full-fledged assets of online trading, attracting the attention of first traders from the USA, and then European users.

The popularity of BO can be considered quite predictable. After another financial crisis, any alternative trading tool was considered by online trading participants as a promising object for investment. Another important point is that the profit-making algorithm using BOs did not require special education and experience (as the owners of brokerage companies claim, but most specialists disagree with this statement).

To better understand the essence of the issue under consideration and the reasons for the appearance of conflicting information about this trading instrument, you need to pay attention to the following classification of BOs:

• The first type is exchange options (real financial instruments, operations with them are carried out only if there is a seller and a buyer; there is no fixed amount of remuneration). Access to real BOs is very difficult to obtain; they are not popular in Europe.

• Second – betting or “betting” options. Almost all trading platforms available in Europe work with this type of financial instrument. Naturally, the value of assets is determined on the basis of real indicators, but many brokers often use the money of their clients to implement their own projects, sometimes “adjust” real exchange quotes or are engaged in the implementation of other “gray” schemes using the capital of traders.

The growing popularity of BOs, the lack of necessary knowledge, and sometimes, an inexplicable belief in a “miracle”, led to huge financial losses for failed “traders”. Not the last role in this case was played by the attitude of users to the BO platforms. Many of them perceived this direction of trading as a casino or a gambling establishment. At the same time, the creators of these platforms cannot be blamed for anything. On each page of the websites of binary options brokers, there are almost always warnings about risks and the real possibility of losing your investment.

Ban on binary options in the EU

The “deceived” (as they called themselves) binary options lovers living in one of the EU countries began to complain actively about dishonest brokers who ruled out the possibility of making money on their trading floors. Representatives of the European Financial Markets and Securities Authority (ESMA) made a radical decision – in July 2018 they simply banned binary options transactions.

The decision of one of the most respected regulators in the world suggested that the prohibition of BO would be reviewed at intervals of once every three months. At the beginning of summer (when this review was being prepared), the situation remained practically unchanged. Not only binary options brokers suffered, but also resources that specialized in CFD trading and currency transactions (significantly reduced the maximum leverage). ESMA also obliged participants in the global financial market to monitor trading accounts of customers, avoiding the appearance of negative balances.

At the moment, ESMA has allowed to carry out operations using binary options, but only professional traders were among the “lucky ones”. To answer the question why the regulating company’s employees chose this particular category of clients, let us consider in more detail how professional traders differ from amateurs.

• Amateurs (especially beginners) very often make deals on the platforms of brokers BO, on the principle of playing in a casino. “Red” or “black”, lucky, not lucky …

• Many of the fans become victims of scammers, from whom they buy “100% strategy” for substantial money, and then make scandals, proving that site administrators constantly deceive them.

• Lovers try to cover everything at once, without getting anything in return. You should not study factors that do not affect the selected tools.

• A good professional, first of all, trusts his experience, and charts, advisers, trading robots, etc. are in the background.

• An experienced specialist can appreciate the trading platform that interests him. A newbie trusts “fabulous” promises and reviews on the Internet, which often results in a loss of capital.

At the moment, amateur traders residing in the EU do not have the opportunity to trade binary options. But, if you wish, you can use the services of companies that are registered in offshore zones (only in this case there is a chance to lose all your savings). We will not end the review on a minor note. Very soon, ESMA plans to revise its decision to ban binary options, while it is possible that within a month the situation with the BO will change for the better.

TRADE OPTIONS

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

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