In the last decade, there has been an unprecedented surge in the popularity of financial investments around the world. The rise of these financial investment options has broken down many barriers that used to limit entry into the financial markets. The last decade would probably be described as “the financial investments age” many years from now.
From cryptocurrency investments down to stock trading and binary options trading, many people explore different trading avenues to earn income. Every day, more people are working to find out about legal binary trading in India. These investment options open up people to earn money using unconventional trading methods.
Binary options trading has been a successful venture for many people in India and around the globe. This success is tied to the ease of getting started in Binary options trading and the entire concept behind binary options trading.
What is the concept behind binary options trading?
In Binary options trading, the trader predicts the increase or decrease in the value placed on the price of an asset within a specified period. The trader backs up their prediction with an amount to start the trade. If the predicted price movement corresponds to the trader’s prediction, the trader will make a profit. Otherwise, they would lose the amount they set on the prediction.
Trading Binary options are easy as there are only two options available before the trader. It is not a complicated trading system that merges several confusing options together. Suppose a binary options trader chooses to call in a trade. In that case, it means that they will only make a profit if the opening value placed on the price of the asset increases, i.e., it is higher than the opening price. If it decreases, they will lose. Suppose a binary options trader decides to put in a trade. In that case, it means that they will only make a profit if the opening value placed on the price of the asset decreases, i.e., it is lower than the opening price. If it increases, they will lose.
Suppose there is no change between the asset’s opening price and the asset’s closing price during the scheduled trade period. In that case, the trader gets to retain the amount they initially invested in their trade and recouped to their balance.
This is a very simple way to explain binary options trading and show that it differs from gambling. Now, let’s go to the focus of this article – Binary options trading in India.
What is true about trading Binary Options in India?
In the introduction to this article, we highlighted that most of the legitimate financial investments available operate by exploring different unconventional trading methods to earn income.
Unconventional in this sense refers to them being different and without the encumbrances that often deterred people from normal financial trading. However, these unconventional methods have given rise to speculations tailored to debar people from trying to understand the truth about trading options like Binary Options.
In India, for instance, there are a lot of concerns about Binary trading. You’ll hear some people making bold claims that Binary options are illegal in India. This is not true, Binary options hold legal status in India as with most parts of the world, but the Binary options space is not completely regulated.
This lack of regulation is due to the failure of the financial regulatory bodies to accommodate Binary options. This lack of regulation has also given rise to different misconceptions about trading Binary options in India.
The clear truth is, Binary options trading is permissible in India. Still, there are no government-backed bodies available to cushion the risks. People who trade binary options in India are left to bear the risks by themselves.
Binary options trading faces several challenges in India. These challenges stem from the unclear interpretations of several legal provisions about Binary options in India. There are a lot of raging debates about the confusion that has arisen as a result.
To set the record straight, Binary options trading operates online and depends on the global financial market activities. Its online operation is largely responsible for its lack of regulation and licensing in India.
But this does not stop you from trading Binary options. As explained earlier, many Indians who trade Binary options do so with the understanding that they are bearing all the associated risks too.
Frankly, there is no risk. Suppose you trade binary options with a reputable trading platform. However, there are hundreds of Binary options trading platforms operating in India, which makes the task of sifting a reputable binary options trading platform a lot more difficult.
How to choose a reputable trading platform in India?
Here are some tips to guide your selection of a reputable binary options trading platform in India:
- Check for language options available on the platform
India is a country with many languages. A reputable binary options trading platform in India should have at least 3 Indian language options available.
- Location of other traders
Since most of these trading platforms operate online, some operate from remote locations without any representations in the countries where they operate. Suppose you cannot find a thriving community of traders who trade on the platform in any Indian online forum or social media space. In that case, you shouldn’t consider trading with them.
- Number of years of operation/ platform’s reputation
A reputable platform will have been around for a good number of years.
- Payout methods
Reputable trading platforms usually have very simple payment methods guaranteed to release earnings as and when due.
- Customer support
The availability of 24/7 customer support is important to trading on any platform. If there are no guarantees of customer support available to attend to you, you are better off trading elsewhere.
Suppose you are interested in making money from Binary options trading in India. In that case, you should be prepared to do the work. You have to investigate and understand the rules guarding the trading of binary options in India. You also need to fully understand the risks before committing your money to trading binary options in India.