A binary options trading platform is a web-based, real-trading arena and under the form of a website. Such a platform offers to professional and non-professional traders, an opportunity to place their bets and to make profits from stocks, commodity, currency and/or index trading.
The user-friendly commission and the-free platforms offer standardized short-term binary options with a pre-determined profit and loss, that can not be liquidated (buy or sell to close) before expiry. These binary option platforms offer options on around 70 underlying assets. Also, a profit scenario of 61% to 85% on options that expire in the money and also week-end trading that offers payouts as high as up to 400%. Binary options platforms are all different and each time one of them strives to make trading as simple and user-friendly as possible. Another goal for these platforms is to attract traders and to provide them with very good client support. That is why almost all platforms offer live chat 24/7, e-mail support, phone numbers for questions and concerns.
When judging the fairness of a platform the following factors should to be taken into account:
- The platform should have a high trading volume.
- The platform offers price quotes from a reliable third party data provider (e.g. Thomson Reuters).
- The platform offers the same price quotes for simultaneously buying a “put” or a “call” option on the same base asset, strike price and expiration time.
- The platform is managing its exposures correctly (i.e. covering a “call” option trade with a relevant “put” option trade) meaning that the investors are not trading against the platform but against each other.
- Clients withdrawals are finalized within 2-3 business days (the client will receive the funds into his bank account within 5 business days (assuming all documents are sent on time).
The platforms do not charge fees from their investors. Their profit comes from the difference between the options that expire in the money to options that expire out of the money. Of course, this does not apply for all platforms, but for the major part of them it is like this.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument