Who Trades Binary Options?


In real sense Binary Options was added to the financial markets in the year 2008. With some modifications by CBOE (Chicago Board of Exchange) and NADEX (North American Derivatives Exchange), it was introduced into the markets for ordinary investors. We have seen it grow into a very lucrative trading instrument for the financial industry, institutional banks, gaming industry and industrial firms. Binary Options became an integral part of the currency market and is made up of government rules and regulations upon introduction to the financial markets.

The Beginning

Binary Options was initially limited to a selected few who were involved in a semi-official over-the-counter market. Binary Option was considered unsuitable for ordinary investors as it was said to be an exotic. Just before 2008 we had a few number of people who even knew about binary options, and even more had a firm understanding of what it was.

In the past those who wished to trade binary options would have to hire the services of a broker to access the market for them. We saw a change in 2008 that ushered in the listing of binary options in some of the major exchanges. At this time we have quite a number of companies that make it easy for investors with interest to own small accounts and start trading binary options almost instantly. Read more on Binary Options brokers.


Market Players

The newly included availability of these options has generated a surge of interest from day-traders, who trade the market on intraday time frames that do not in any way allow for the addition of traditional options into their strategies. We now have market players who get involved in options with hourly expirations binary options made available to them. Increasingly, we have seen day traders taking full advantage of these. Read more on how to trade Binary Options

At the same time we have seen how traditional option traders are becoming more open to exposure to binary options. Even when it is clear that these new class of option cannot be sold before expiration, and it truly does not offer the same theoretical uncontrolled gains that traditional options can yield from massive moves in the prices of underlying assets. It is these intriguing characteristics that investors find irresistible. We find a big fluctuation in the market causing huge opportunities for profits when trading binary options, which is due to the risk of having a highly controlled trade. There is a removal of much of the markets uncertainty by fixing the odds, risk, and rewards. This in turn removes the need to sell or exercise your option to achieve profits.

Financial Market Movements and Market Movers

The market movers are basically big financial firms, Central Banks, Multi-National Corps and big private investors. They strive to be always ontop of things, and when it comes to binary options investments, they try to correlate their trading to financial market movements.

Financial market movements are vital for the market success and we discover that the publishing of critical news releases or even price actions from a technical point of view are all instruments used in judging this. All the financial market participants are different and when it comes to trading Binary Options, you’ll need to find which binary options investment strategy suits you.

It is suitable to note that those who trade binary options are always looking for ways to correlate their binary options investment with the financial market. This is achieved by selecting whichever asset you find keen interest in. They could vary from commodity, such as Gold or Silver. Invariably, they could also be a currency pair, such as the AUD/USD and USD/NOK. The choice is yours!

Learn more from our Daily or Weekly Binary Options setup.

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