Can we trade Binary Options from India?

[Kungfu]

I do hear that it's very strict to trade Forex in India but want to ask same question with binary question, a new trading type in market. Anyone know? Please tell.

 

[global trader]

A side but more important point..
Are you aware that these so called Binary Options Brokers.. are very very thinly regulated.. there are hundreds of them...HUGE red flag !
As on today (Nov 2014) there is only one regulated Binary Options broker in a relatively respectable jurisdiction of CFTC in US

+ ALL market makers.. why would you trade with market maker model? meaning direct conflict of interest
Agreed that the product and platform looks attractive ( short term bets)
One alternative is to trade Options spreads using Property regulated Exchange Traded options!

 

[aryabhatta]

It does not matter if its Binary or normal Forex trading both are illegal in India.

Just out of curiosity where does it say trading binary options on forex is illegal

 

[Mahendhar]

I personally think that Binary Options trading is legal compared to trading Forex. Because in Forex trading, we buy foreign currency to trade (for ex. 1 lot), but in Binary trading, we do not buy anything, we merely predict the movement.

Forex definition: When trading Forex you are speculating that the value of one currency will increase or decrease compared to another, in an attempt to make a profit. For example: The current price of EUR/USD is 1.30850 and you think the price will increase in the future. You buy 1 lot of EUR/USD and wait for the price to increase to the point where you want to close the trade and realize the profit you want.

Binary Options definition: When trading Binary Options you only have to predict if the price of an asset (for example currency pair or stock) will increase or decrease from its current price over a certain period of time. For example: The current price of EUR/USD is 1.30850 and you think the price will be higher in the next hour. So you place a “Call” option on EUR/USD and wait to see its price 1 hour from now. If your prediction is right you can make a profit of 80% of your investment.

Margin
Forex: You can use margin to trade Forex. The maximum margin is determined by each broker, and sometimes can be up to 1:200 or 1:500. Margin allows you to increase your investment capital so you can make a larger trade and make a larger profit if your trade is a winning one.

Binary Options: Margin is not used when trading Binary Options. You can still make a large return on your investment (up to 80% or sometimes 400%), so Binary Options are still very attractive for traders. The good news is that you can never get a margin call.

I read somewhere that one of the reasons RBI has problem with forex trading is using 'margin to trade.' In Binary Options Margin is not used.

But, it will be good if someone legit can make an official statement.

 

[fxgood]

Any form of betting or gambling and transferring money for lottery , sweep stakes (which covers this binary options/betting under technical definition is illegal under FEMA )

 

[global trader]

Mahender
Binary Option is similar as Short term betting ( does not matter if you are betting on stock or horses) so may be what FX Good is saying is correct! for Indian residents

My main concern is are you aware of the fact is this so called attractive market is hardly regulated at all! in major countries !

+ you are trading against the broker
Should that not worry you?

 

[SurtiTrader]

There are many Indian websites which offers trading with binary options you can choose from it and also there are various ways to trade with binary option but I prefer Forex Trading more than any other Binary Option.

 

[Somatung]

There are many Indian websites which offers trading with binary options you can choose from it and also there are various ways to trade with binary option but I prefer Forex Trading more than any other Binary Option.

But non asked in this thread about your Forex trading and in more or less all posts in every thread you post you tell always the same thing: And that is that you seem to do Forex trading. Ok, now we know it

 

[tranceblogger]

There are many people trading binary options using IQ Option. According to Alexa and Similarweb there is an tremendous increase in the traffic to iqoption from India. Some people are even providing signal services and trading services. But trading Forex is still illegal in India but many practice it using international brokers.

 

[Hulu Girl]

In India, Sebi doesn't allow binary options on regulated derivative exchanges and they are illegal. They are regulated by European authorities and as such, you should feel quite comfortable with them.