The higher the number of binary options brokers, the fiercer the competition becomes in the industry. While it is true that the numbers of retail traders are also increasing by the day, the competition among these brokers does not seem to abate. As a customer, you need to know the various ways in which these brokers compete with each other so that you can negotiate the best of the offers for yourself.
There are a lot of people who are trying their hand at binary options. One of the main reasons for this trend is to do with the fact that binary trading is one of the easiest forms of trading that you will ever find.
If you are a day trader, you know that markets often move in the direction opposite to what you had hoped for. It is times like these that you can take the help of binary options brokers for hedging your trades.
Binary option is a type of contract where the payoff is a fixed amount in a winning trade and nothing in a losing trade. The contract may be cash-or-nothing or asset-or-nothing. In the first type the investor receives a fixed amount if the price of the underlying security reached the target price. In the second type, the investor receives the value of the asset price.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly known as Dodd-Frank bill became law of the land when President Obama signed it on 21st July 2010. The bill, seen as the outcome of the recession of late 2000s and considered to be the most significant piece of legislation in financial regulation since the Great Depression of 1929. The law has had a major impact on traders who trade in binary options.
While the binary options market has been an unregulated market for a long time, the recession forced the Obama government to take some measures in order to protect the customer. The Dodd-Frank Wall Street Reform and Consumer Protection Act, better known as the Dodd-Frank Bill was signed in July 2010. Despite the fact that the intentions of the government have been positive and protective towards the consumer, a large number of US investors have been forced to change the manner that they trade in binary options.
There are so many features of binary options brokers that you will need to grasp. The best advice for interested traders is to start learning more about these features from now. The quantity of features has increased significantly recently, as there is a lot more competition in the binary options market than in the past.
Binary options trading can only be done with one of the many binary option brokers of your choice. It is not at all possible to trade binary options without a broker. The big positive is that these brokers offer an interface where you can make profits from the binary options market.