Learn About Binary Options
By Stock Options Channel Staff
Slide #3: Binary Options Account
Some important considerations when selecting a binary options account are regulation and deposit location. If your funds
would need to be deposited to a location outside of the United States, that is a red flag. Make sure your deposit will be
held in a U.S. bank, and in a segregated account.
Find out if the binary options trading platform is regulated. With an exchange regulated by the Commodity Futures Trading
Commission (CFTC), there is full transparency on every trade, with the exchange simply matching buyers and sellers. These
traders do not know if the person on the other side of the trade is getting in or out.
An over-the-counter (OTC) binary options platform by contrast may directly issue you a contract, meaning you are betting
against the platform operator who then knows that you are getting in or out of the trade. Then, when the underlying asset
moves in price they will know whether you are winning or losing. For this reason, binary options traders are wise to look for
a regulated binary options exchange, as opposed to an off-shore unregulated
platform.
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