A History Of Binary Options

In 2008, the U.S. Securities and Exchange Commission’s approved the binary options. According to Investopedia, Binary Options is described as:

"A binary option, or asset-or-nothing option, is type of option in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the money. The success of a binary option is thus based on a yes or no proposition, hence “binary”. A binary option automatically exercises, meaning the option holder does not have the choice to buy or sell the underlying asset."

But the history of binary options has not been a smooth one. There have been several regulatory issues along the way: this summer France and Belgium prohibited all advertising of binary options products. Even so,the phrase “binary options” now receives 110,000 monthly searches in Google, only 20,000 less than “forex trading”. Israel has emerged as the centre of binary options: in 2014 The Time start-up incubator reported that 15 Israeli trading companies were posting annual revenues in excess of $10 million, and 3 in excess of $100 million. Binary Options Robots has made a great infographic, reviewing the history of Binary Options.

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