One of the main paradoxes of modern society is the fact that often the name (brand / trademark) of a thing, product, or service is more important to consumers than its functionality, quality, and other characteristics. We will not analyze the complex categories of market economy and marketing, just give a few examples. This will help readers to figure out for themselves how the above statement corresponds to the real state of affairs.

For example, a modern young man will choose Levis jeans, rather than high-quality trousers of domestic production (forget about stereotypes, our manufacturers have learned how to make high-quality clothes), despite the fact that the latter are better by all indicators than the legendary Levis. Similar examples can be found in other areas of the economy. When buying a car for off-road trips, they choose a vehicle of reputable manufacturers, even if the cheaper Niva and UAZ vehicles perform all the necessary functions without problems.

Another interesting observation. Marketers say that nowadays the positive / negative aspects of a service or product are associated with the name / brand, and not with the specific negative characteristics of a particular model, type, etc. For example, a company (let it be “X”, do not advertise to someone or anti-advertising) for a long period of time produces high-quality vehicles. Products “X” has a high technical and operational performance, it is well bought. But in a certain period of time, it implements several unsuccessful projects, buyers began to complain about the quality, etc. If the company does not take any serious steps to resolve the issue, then very soon the attitude to the brand will change dramatically. From a reliable, promising company, it will turn into a company from which it is better to stay away. At the same time, the “X” and all its products will be blamed; hardly anyone remembers the quality models of this manufacturer. The solution to this problem is often carried out by creating a new brand. The name changes, everything else (production facilities, workers, technology, etc.) is preserved. With a competent marketing policy, such companies continue to work and bring good income to owners.

 

Fixed and digital contracts

 

Binary options: from a promising object for investment to a tool to deceive traders

Not so long ago, a story occurred in the global financial market that is practically no different from the above example. Its main “participants” became binary options (BO), which are known to all subjects of online trading.

The history of these ambiguous financial instruments began in the 17th century, when the first agreements appeared on the right to buy / sell tulip bulbs at certain prices during a specified period of time. The next stage in the development of BO is the application of this scheme for operations with shares, and then, the appearance of over-the-counter and exchange-based securities trading.

And only in 2007, binary options become a legal instrument of financial markets. During this period, a mechanism and rules for their use by online trading participants are being developed, and each investor who is willing receives the opportunity to invest monetary instruments in a BO.

Two years later, the presented tools are becoming so popular that even the most reputable brokerage companies are interested in this topic. Also in the financial markets there are sites that specialize only in operations with BO. A simple algorithm for dealing with options becomes the main reason for the increase in the number of traders who had no idea about the global financial market, its participants and trading instruments.

As real (stock) options are handled by several large brokers, and it’s quite difficult to get access to their resources, this situation is interesting for scammers who have begun to actively develop various fraudulent schemes using the considered trading tools. Most of the services that provide access to BOs work with bookmaker options. That is, these tools allow you to earn, predicting the trend of changes in the value of assets, and then, on the basis of analytical information, choose one of two events:

    • the price of the asset goes up / down;

    • will reach a certain level / will not reach;

    • leave the established “corridor” or remain within the specified interval.

Also, the trader knows how much he will earn in case of a correct forecast, which strongly resembles bookmaker bets, which became the main reason for applying the above name.

Fixed and digital contracts: description, characterization of key points

In the period of increasing the popularity of BO, from about 2009 to 2015, about 1,500 companies were established that specialized only in operations with options. But in parallel, there were also created services of scammers who actively deceived their clients. The lack of legislation, the ability to work around the world with the help of the Internet, as well as miserable chances of falling into the hands of justice, greatly contributed to the development of such a “business”.

The development of fraudulent schemes, combined with a high probability of losing on the trading floors of honest brokers, has led to huge financial losses for traders all over the world. Bo’s reputation is rapidly falling, this activity is declared illegal in Israel, France, Belgium, other EU countries, and strict restrictions are being introduced in Japan, Australia, New Zealand, etc.

Many analysts have concluded that the BO will soon remain only in the pages of the history of the global financial market. But, back to the beginning of the article (most likely the readers already understood why such a great introduction). Using the strategy of the company “X”, the financiers decided that the traders have all the negative aimed exclusively at the phrase “binary options”, which cause associations with deception and fraud even among those participants of online trading who have never worked with BO. So, it is enough to change the name and slightly correct a few moments in order to continue the promising and interesting activity. Thus, “fixed and digital contracts” appeared on the world financial market.

The first brokerage company that decided to take on new / old options is Alpari. At first, the administration of the resource did not even change the section where operations with the BO were performed. The key parameters of fixed and digital contracts do not differ from those of traditional options. Therefore, all the information presented is relevant for the “new” financial instruments.

The main question that concerns the participants of online trading is how long these contracts will last, and is it worth contacting them at all? But so far it is difficult to give any predictions. Much depends on the position of governments of different countries and financial market regulators. Therefore, it makes sense to take a wait and see attitude, continuing to work with traditional instruments. But, as a last resort, you can choose a reliable broker and independently verify whether there is a difference between fixed and digital contracts (on the one hand) and binary options (on the other).

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.”

Fixed and digital contracts — new tools in the global financial market
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