Binary options exchange is a platform that combines the principles of trading of European binary brokers market and the American stock market. There’s only one copy. And often, novice traders are confusing options and binary options, binary stock exchange AMEX and the structure of the CME, ITS (BVZ). We will dot the “I” And will tell you all about options stock trading.
Options and binary stock exchange
Binary market and trading options do not have anything in common! This misconception appeared due to the fact that the option in both terms refers to completely different things (that is, a homonym). Real option is a contract which relates to derivatives (derivative securities), it is drawn in documentary or electronic form on the world stock market. On the stock exchange has ITS index options with the Ticker symbol BVZ (volatility index). BVZ is related to one of the most attractive along with the index option on the S&P500 index (BIZ). It is the only two assets that you can buy on YOUR own. Other optional tools does not exist!
Binary option is a bet of the trader on where the price of an asset at a fixed amount of time will be.
- Important! Brokers of Moscow binary market work on the system of internal clearing, that is, do not take the client on an international level. This is logical, since the yield on liquidity providers and OTC trade requires maintenance costs that are not possible with a small initial deposit. However, this is not a reason to classify the company to the “kitchen”. An honest partner will always give to withdraw the money earned, but in terms of where it will take them working stats — good if at least 30% of traders earn money.
And yet the real binary market exists. It’s an American company NADEX, which positions itself as a Market Maker. That is not just a broker but a partner who at the time of shortage of the asset can itself act as a counterparty.
How the NADEX works
The organization was founded in 2004 and is a mediator for transactions, including options trading. In accordance with the laws of the United States, NADEX is a clearing house organization for the exchange of derivatives (regulated by CFTC). It has the technical ability of binary trading. Its peculiarity is that the organization provides open access to each trader between which trade takes place, and the site acts only as a mediator. On the one hand it is good — there is no conflict of interest between the trader and the counterparty. On the other — if there is one buyer and two sellers, one of the sellers just can’t make a deal.
Features of NADEX work:
- the organization provides its own trading platform. Work with other platforms are excluded. Technical analysis is similar to the classic trading;
- underlying asset are stocks, currency pairs, commodity, bitcoin and events (forecast of interest rates, indicators of unemployment and Non-Farm). There are no stocks of definite companies;
- there are no conditions of profitability. The commission — 0,9-9 USD for a contract;
- there is an expiry, but profit or loss depends on the number of passed items, some of the contracts include spread;
- to start you need to replenish the account in the amount of $ 100;
- the platform displays the number of contracts;
- money can only be made via bank transfer or via electronic (paper) check, withdrawal of money only through the Bank.
NADEX — is an original symbiosis of the exchange market and brokers of options. The principle of work of the organization is more like the work of CME, but from the binary trading platform has taken the principle of betting, that is betting on change. Traders do not buy or sell the asset, how it happens in stock trading, and rely on the price change and trades CALL, PUT mutually taken into account. For Europe, this is a new kind of tool.
Attempt to create a similar technical company, similar to NADEX, undertaken in 2015. At that time Cantor Exchange appeared in the US. For trading the marketplace has created a special broker, but due to the unpopularity of the binary analysis in the USA, the site is half alive.
How to trade binary options for the domestic to the investor
Binary options trading on the Moscow market still remains possible only through a European company. NADEX does not work with CIS and to obtain the release of mediators of the United States with derivatives is possible only within the company and with a large deposit (from 30-50 thousand USD). The list of European brokers can be found here. European jurisdiction is determined by the fact that in Russia, binary options not legally defined, and because brokers have to work in accordance with European standards (there are just no Russian standards yet).
Summary. Options trading for traders of the CIS is possible only in a few cases:
- on the Moscow stock exchange (FORTS). It is about these derivatives, a large deposit is not needed;
- on the American stock exchanges. Only available to investors with a very large deposit;
- binary options trading in the classic sense.
Analysis of the conditions of the brokerage institutions and their regulators will allow you to choose the best partner that will give you the opportunity to earn good money. Ask questions in the comments and stay with the site Investlb.com that will help you to become true professionals! Strategies, methods of earnings, assets, interviews with professionals — only here you will learn absolutely everything about the financial instruments!