WHAT IS BINARY OPTION TRADING ONLINE IN INDIA?

500 Per Crore / Sep 28, 2021

 

As an investor you can witness a tremendous growth in online trading globally and you know that India doesn't fall behind in this. Binary trading has gained huge popularity in India since its introduction. Most of the investors are concerned in investing their savings in binary options such as IQ option but here most of the traders have a common question : "Is binary trading legal in India?"

As an investor you might be confused about choosing binary trading. In this blog, you will be guided with relevant information for all queries related to binary trading. Let's have a look at these queries one by one:

 

1. WHAT IS BINARY TRADING?

In India, Binary trading is a form of an 'all-or-nothing' option. It means that the payment is composed of a fixed compensation upon expiry of option in money or nothing upon expiry of option out of the money. As mentioned earlier, the binary option is a kind of yes or no probability. Since the trading is performed automatically, an option holder does not have the choice to buy or sell the assets.

If you are about to make your investment in binary trading then you should be aware of the risk associated with it. Binary option trading is performed with the help of software like IQ Option which requires high-risk management. The binary option holder must know the risk involved in each trade and the loss is limited to the amount risked in binary trade

 

2. IS BINARY TRADING LEGAL IN INDIA?

Binary trading is illegal in India. Binary trading or any form of online trading of foreign exchange is not legal in India as it has been regulated by the Reserve Bank of India. The financial regulators of India RBI and SEBI does not favour investing in binary options like IQ options in India. This is because Foreign Exchange and Management Act prohibits binary trading or Forex trading in India through electronic or online trading portals. Any investor who performs binary trading in India does at his/her risk as there is no law to regulate dealings of binary trading options in India.

 

Many investors would think that the IQ option is legal in India. Since the binary option is considered to be not legal in India, the IQ option also does not hold legal status.

 

3. HOW TO TRADE BINARY OPTIONS IN INDIA?

Since trading binary options is considered to be illegal in India, many investors would trade binary options in India but these trades are usually associated with higher risk elements. In India, an investor can perform binary trading in the following way:

 

  • Find an offshore binary option broker and open an account
  • Choose the asset that you want to trade
  • Make your predictions in the trade
  • Invest your money on the binary option and start trading.
  • The outcome can either be a direct return on investment or no investment at all.

 

MAKE YOUR DECISION WISELY:

Investing in binary options posses higher levels of risk as it is based on the probability of "yes" or "no". The investment can either fetch returns or it also has a chance of fetching no returns at all. Trading binary options is also considered to be illegal in India and it is always advisable to seek expert guidance from trusted brokers as they will guide to make your investments in other trading services.

 

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