Binary Options History

Binary options concept has for a long time been in play. Binary options trading also considered as digital options trading. For a long period, this kind of investment has been a vehicle which has remained to be exercised by the elite investors. During these times, it was done as an over the counter procedure and was not regulated. Basically, this involves signing of a contract that will only end up with a profit of about 70% of the initial investment or a loss.

Speaking about binary options history, the first notable major event that changed how binary options trading was done happened in 1973 after the Chicago Board of Trade came up with the first arranged options trading by developing the Chicago Board Options Exchange (CBOE). This was the first platform of its kind and has since been the biggest in the world.


Binary options is introduced to the stock markets

In the binary options history, 2008 saw the current binary options platforms being introduced. This was after the systems crashed in the financial markets when the mortgage crisis in US triggered the fall of Bear Stearns and Lehman Brothers. Due to the crash of the financial markets, there had to be introduced a system with low risks for the average trader, and this is when binary options was open to average traders and not the elite investors as was before.

How did binary options come to be allowed to the stock markets? In 2007, the Options Clearing Corporation (OCC) filed a change to the rule which would make it possible for the options to be traded in the stock exchange platforms. This move was approved by the US Securities Exchange Commission (SEC) in 2008 which made it legal for binary options to be listed as tradable contracts on International Financial Markets. As of today, you can invest as little as $10 in a binary options platform.


Recent years have seen a surge in binary options trades with the introduction of sophisticated platforms and tools. This new mode of trading has offered flexibility and diversification in the assets, strike prices, expiration times and contract types. With this kind of features, more strategies are brought up and target more profits at lower risks. Traders have been in a position to make more profits with the emergence of new binary options brokers who have come into the game with sophisticated platforms.


Binary Options goes online

With the advent of new technology, 2010 saw binary options platforms get to the internet. This was after binary options brokers came up with policies that made sure trading was simple and traders could do it from the comfort of their homes; anytime and anywhere around the globe.

The varieties of trades that can be implemented have evolved. Most of the brokers conduction binary options trading online are now offering simulated trading which allows you to learn binary options trading with virtual money. They are also offering charting tools that assist traders in conducting technical analysis before trades.