A Brief History of Binary Options – When Did They First Appear?

history-of-binary-options

Everything has a beginning and binary options trading is no exception.

This amazing industry saw its rise in the year 2008, and since then, many financial geniuses and regular old Joes, who had not the slightest idea what trading was, have made fortunes following assets’ behavior and predicting on the direction a certain asset's price would take.

This industry that gives you the opportunity to trade using two options, a call, and a put, has a rich history.

Although the rule that allowed for binary trading to be done in the main market was passed in 2008, binary options trading was made possible in 1973 when the Chicago Board of Trade (CBOE), designed this particular platform that presented traders with options.

And if you've been following the binary options trade, by now you've come to realize that this trading platform is of a short-term nature.

It is either a trade ends in the ‘out-of-money’ option, or ‘in-the-money’ option respectively and within a short amount of time such as 30, 60, or 120 seconds.

In the earlier days, binary options were done over the counter like most other trading but with the advancement in technology, there is now something known as digital options.

Digital options are the same as binary options trading, with the only difference being digital options is done online and make trading options that much more fun and exciting.

History of Binary Options and Its Road to Success.

In the past there were no documented rules or regulations as to how traders could operate but with the help of the CBOE, this was all changed.

With the Chicago Board of Trade being the largest trading platform and the very first one created, there have been many other platforms and the North America Derivatives Exchange (NADEX), is one such trading ground.

With the help of CBOE, binary trading has been transformed into a reliable trading platform and with the rules that have been installed by the Options Clearing Corporation, OCC, traders can only buy and sell assets that they say they are trading on.

There are no backdoor deals with binary options and thus all traders have a fair chance at predicting and therefore winning on this platform.

The rules that have been set with this co-operation can lead to a temporary or permanent ban from the trading platform if they are broken.

Binary options since 2008 have become an amazing trading platform for the gaming industry and as a financial trading ground.

As one of the most popular financial platforms in the world, binary options as was mentioned before have gotten government taxes and regulations in order for it to operate and facilitate traders from all over the world.

Historically, trading platforms allowed traders to buy assets based on what they think they will be worth in the distant future.

This meant a trader would buy a contract on a particular asset and wait for the expiration date to come to fruition.

This expiration date would be months in the future or simply a few weeks as opposed to the seconds we now have.

With binary options now being done online, you're able to trade without getting a contract and you can do so from wherever you are in the world.

What's more, and unlike before, more than one underlying asset can be traded using online binary option tools.

And while binary options was described in the past as a platform for beginners, seasoned traders are now using this platform to trade due to its immense popularity and great payouts.

Other advantages of online binary options include the reduced risks, availability of more timing flexibilities, accompanying strike price implications, contract options, and more available strategies for maximizing profits.

Even so, try and keep this in mind before trading: Research the market and ensure that you are trading on a reputable platform; on an asset that you have been following.

If you feel you are ready to trade, first open a free demo account loaded with $10,000 free money and start practicing risk-free.

Note: Trading binary options can be risky. Invest only what you can afford.

Image Credit: Designed by starline / Freepik

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