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Most Popular Ttypes of Quick Profit is Trading Binary Options

The rapid development of technologies, the continuous formation of the information society, the introductionof new electronic forms of doing business, all this is an integral part of the interaction between entrepreneurshipand the government. The World Wide Web is a huge platform with the opportunity to earn money for specialistsin almost any kind of industry, from stock trading to ordinary speculation on the difference in currency exchangerates. Today, one of the most popular types of quick profit is trading binary options. This method makes itpossible to obtain a large income in a relatively short time. In this article, we tried to consider the types ofexisting binary options, as well as those that operate in the territory of the Russian Federation, to analyze themain problems and prospects, to consider the main examples, and the prospects and problems of using binaryoptions in a rapidly developing digital economy.Keywords: binary option, trader, brokers, exchange, strategy, stocks, deposit1. 

INTRODUCTION

Over the past years, the financial market has beendemonstrating a rapid pace of development. As realbusiness practice shows, the larger the financial market, themore complex and diverse its tools, the more important isthe analysis of the effectiveness of investment operations(investments). The rapidly growing scale ofcomputerization and global technological re-equipment offinancial markets based on modern informationtechnologies have led to appearance of a new type ofearnings - via the Internet [1]. A certain financial innovationhas become the so-called binary option. Generally speaking,an option is a special voucher that assumes some expirationtime, after which it is determined whether it is profitable ornot. In our understanding, a binary option is a bet on apositive or negative outcome of an event. Transactionsusing binary options occur on the basis of the tradingplatform, which can be found on the Internet. Usually theseare companies providing brokerage services. A binaryoption is a kind of purchase contract. At the time ofpurchase of the stock, the trader must determine in whichdirection the price will move, higher or lower. Binaryoptions are rightly considered the most profitable type ofonline trading. One deal lasting a minute can bring theaverage monthly salary of a Russian citizen [2].

2. METHODS

In the process of work on the topic, private scientific legalmethods were used, such as especially juridical, expressingthe nature of their own regulatory organization ofknowledge of the state and law. The method of comparative aw, which allowed to correlate the economy and law of theRussian Federation with the economy and law of othercountries in terms of general characteristics and features oftheir organization, structures, functions, etc.In addition, the research methods and techniques were usedto ensure a uniform and reliable empirical material and itsinitial processing, such as generalization of lawenforcement practice, procedures for juridical description ofcurrent legislation, etc


3. RESULTS

Binary option is comparatively a young type of transaction.Generally speaking, an option is a special voucher thatassumes some expiration time, after which it is determinedwhether it is profitable or not. It sounds pretty tricky, but infact, everything is much simpler. In our understanding, abinary option is a bet on a positive or negative outcome ofan event. 

For traders, this is an increase or decrease in theexchange rate of two currencies or a pair of securities. Thetrader’s profit depends on whether the outcome of theoption is predicted or not. Some people compare suchearnings with roulette, because if you cast aside anyforecasts, then it is: either black or red.Profitability in case of winning ranges from 50 to 80percent. 

Such differences depend on the popularity of thetrading pair and market position. For example, if there is apronounced trend, the yield will fall, since no broker willwork at a loss. For this reason, there is fierce competitionbetween sites.Today, there are several types of options: classic binaryoption. The most common and popular form, considered the source of all binary options. 

When working with this type,an elementary prediction of the results of the value of theoption asset after expiration is necessary; turbo binaryoptions. 

The main essence of this option is similar to theclassical trading scheme, a distinctive criterion is asignificant reduction in the expiration time (from 15seconds to 5 minutes); binary options "One touch". The wayof operation of this type of binary option is the trader sets afixed border, which, in his opinion, can be touched on thetrading schedule of the asset before the expiration of thetransaction, which will allow him to make substantial profit.The premium for these options can reach 500-600% pertransaction, but such options are usually sold on weekendswhen trading activity is minimal and apply to low-usemarket assets; binary options "Range". 

The tenet ofoperation of this option is similar to the one-touch option,only in this case the trader sets not one point, but a range ofvalues from which the chart can either exit or remain in it.Earnings are carried out on special broker sites. Theseprojects provide an opportunity for traders to trade onlineimmediately after making a deposit. Binary options brokersprovide various conditions for partners: the minimumdeposit amount, the percentage of the transaction and manyother opportunities. By the way, there are a number ofproven trading platforms with positive reviews.Strategies are also being developed in large quantities. 

As itwas found out, in a relatively stable economic situation,fluctuations of the currency pair have a wavy character andfrequency, depending on market sentiment. It is the abilityto correctly guess when the trend will change will help to besuccessful in trading options.There are two types of analysis: technical and fundamental.After a novice trader has chosen binary options as a markettool (what it is, you already learned above), the first thingyou have to face is a technical analysis, which consists inthe ability to work with signals.In fact, these are ready-made solutions that should give thetrader an idea of which direction the option will go. 

But theyhave a number of significant drawbacks: firstly, the time oftheir expiration is not indicated, and secondly, they do notindicate how many points the value of the pair will change.But, unfortunately, these are completely insignificantproblems of these signals. A much bigger disadvantage isthat in most cases they turn out to be wrong. Many peopleunderstand how to use them correctly and focus on binaryoptions. Strategies are just for this. 

In general, technicalanalysis is an assessment of chart behavior and the study ofsignals, economic news and other factors, based on whichthe type of strategy that will be used during a certain tradingtime.The actual type of analysis will be applied to the directdevelopment of economic strategies. In fact, all thesituations occurring in the market are already a number ofready-made solutions. Their correct understanding andability to combine will be the key to success. 

To carry outfundamental analysis, you must have good knowledge. Ofcourse, it includes technical elements, but the determiningfactor is the ability to correctly predict which situation willfollow the current one on the market. Despite all theseriousness, its implementation will not take much time rom an experienced trader, and the result will besignificantly higher than with technical analysis.One of the most common strategies for working with binaryoptions is to accelerate the deposit. 

The method of dispersalof the deposit implies high risks, however, it allows arelatively rapid increase in the amount of funds available.After a trader already has serious money, he already has theopportunity to reduce trading risks, while at the same timedue to high profitability indicators he remains at the samelevel. There are some signs for this method, such as highprofitability, an increased number of transactions during acertain period, high current risks, and a high risk of losing adeposit before the end of the “dispersal”. Perhaps it’s worthstarting with a high risk, which is offset by an increase inthe profitability of transactions. Each of the strategies foraccelerating the deposit in binary options implies a higherprobability of losing a significant part of the capital at a timewhen, due to the growth of funds on the deposit, you canuse risky tactics (crossbow strategy). That is, we can losenot only the money that we managed to win, but also thefunds on the deposit at the initial stage. 

There is a traditionaloverclocking technique where the deposit can be increasedten or more times, and this is perhaps the only way fortraders who cannot make a large deposit. Many of thesestrategies include “re-up” the loss - after the losing bet, theamount of investment doubles, which allows you to coverlosses from a failed transaction and make a profit at thecurrent moment. The common name for tactics is theMartingale strategy, which has many varieties andbranches. Why is it better to disperse a deposit on options?The option to accelerate the deposit is the most effectiveapproach, you can increase the volume of trading on theForex or the stock exchange, but this increase in the risk oftrading binary options is not possible. The main task of thetrader is to ensure that to prevent a long series of failuresthat due to the constant increase in the number of depositrates will lead to a drain (at one point the set will havenothing). 

You can also mention such a strategy as “Systemfor 15 minutes”. One of the trading strategies that deservethe attention of traders is the binary options strategy for 15minutes. To start the strategy, you do not need additionalprograms, you only need an online schedule. The strategyuses two indicators for 15 minutes, which filter each other'svalues, cutting off unnecessary indicators. A tradingstrategy is versatile because it is suitable for any asset.When characterizing options in the Russian Federation, thequestion arises about the legal status of binary optionsbrokers in Russia. Brokers are licensed and controlled bythe Central Bank of the Russian Federation, which becamea regulator after the abolition of the Federal Service forFinancial Markets. But as for binary options, it is not sosimple. The fact is that in Russia the law on Forex wasadopted [3]. 

The law provides for amendments that areaimed at regulating the activities of the company in the OTCmarket. Many forex brokers provide binary options trading,these services also fall under these amendments, and theconsequences of this law directly affected them. This lawapplies only to brokers who are registered in Russia.Therefore, most dealing centers generally do not care aboutRussian laws on OTC markets, because it is known that almost all the brokers available on the Internet areEuropeans and only a small part of them are Russians.However, they are all registered in offshore markets; this iswhy the stock exchange has become the spot of fraud in theRussian stock market.The creation of cover helps to avoid legislative problems.Most companies that offer money on the Internet throughbinary options have a cover or even a twin with a legal face.They write about it on the site and, usually it becomes theChicago Option Exchange. 

Information about it and itsinteraction with a company offering earnings on a binaryoption can be found by simple queries in the search enginesand on the sites of the options themselves, but in fact theChicago Option Exchange has nothing to do with Russianscammers [4]. As a result of a game with Russian binaryoptions, a situation is formed when a person entrusts hismoney to unauthorized persons who do not give anyguarantees about their safety. In addition to currency pairs,fraudsters often attract shares of well-known globalcompanies, whose indicators have leading positions in theratings of world exchanges. This move indirectlydetermines the legitimacy, frequency and realism of theoperations carried out, forming in the minds ofinexperienced market participants a positive attitudetowards the company.Not a single Internet portal offering binary options on theRussian market publishes official documentation on itsactivities and securities sold, not because it is hiddeninformation, but only because these types of documents aremissing. The totality of such phenomena confirms the initialidea that Russian binary options Internet sites are nothingmore than an online casino [5].

4. DISCUSSION

As you can conclude, the consequences of low financialliteracy is a reason of an increase in the number of financialfrauds, in the accumulation of excess payables, and theinefficient use of personal savings [6]. Moreover, lack ofeducation and distrust of citizens in financial markets, lackof understanding of contractual relations hinder thedevelopment of small and medium-sized businesses,entrepreneurial activities [7]. This is one of the most acuteproblems of our time, suggesting a comprehensive approachto solving it, including taking into account psychologicalaspects, social status factors, the level of disposable income,gender characteristics that somehow affect the models ofinvestment behavior of households [8]. If we takespecifically the binary options market and the brokersthemselves, then this is an interesting situation. Theirservices are not covered by currency trading. Logically,their activities should fall under the OTC derivativesmarket. However, specialists are well aware that he wasalways too “free” and not standardized. The marketexpected at least some clarity from the introduction of thelaw "On the Forex market", already signed by the presidentof the Russian Federation. But in the end no changes areobserved. A lot of traders switched to binary optionstrading, leaving the forex market in the background, fromwhich we can conclude that options are only becoming more popular. The reasons for this popularity are as follows.Some praise the clarity and simplicity of these tools. Otherssay that fixed risk and fixed profit are more comfortable forthem and allow more attention to be paid to the tradingsystem itself. Still others write that they are afraid of theimpending regulation of the forex industry. Because afterthese innovations it will be necessary to retrain, and manytrading systems that are now quite effective and profitablemay not work at all later. Well, advertising is doing its ownthing. Often, we see almost the promise of guaranteedincome and all that is needed is just to understand a simpletrading platform and replenish your trading account.Therefore, recent changes to the law "on the securitiesmarket", where are provisions regarding the advertising offinancial services, are very welcome. The point is that thereshould be no abuse, and potential investors should beproperly warned about all the risks. On the Internet, we seemany binary options brokers. For obvious reasons, adomestic trader is drawn to his companies. From a legalpoint of view, there are no such brokers at all, since theregistration with them is mostly Virgin Islands or Cyprus.However, you can find brokers that are most suitable forRussian traders. The owners of such companies wereRussians and initially created brokers that were adaptedprimarily to our segment. For example, this is the well-known Alpari broker [9], who recently lost his license fromthe Central Bank of the Russian Federation due to aviolation of the law. Federation in accordance with newlegislation. The company is one of the initiators of thecreation of the OTC Financial Instruments andTechnologies Regulation Center. It also took part inadvising the State Duma Committee on the financial marketregarding the development of Russian legislation on theForex market. Also, one cannot fail to mention the companyRoboForex, which created a separate company RoboOptionand is primarily aimed specifically at traders from the CIScountries. Another well-known company focused on theRussian market is Binex [10]. Its owners are Russians andthe company initially had a service focused on domesticcustomers. In particular, one can note the replenishment andwithdrawal of funds without commission using the mostpopular electronic payment systems in Russia. Russian-speaking support, which is almost always online, and manyother benefits.

5. CONCLUSIONS


Summarizing the above, it can be concluded that in order toeliminate the problem of using binary options and excludefinancial fraud, a clear legislative regulation of this concept(phenomenon) and the fundamentals of the functioning ofthis market relations tool, explanatory work with the publicand a general increase in the level of financial literacy arenecessary. Despite the fact that the Central Bank of theRussian Federation, judging by the statements of itsleadership, wants to protect our citizens from troubles intoday's Forex market, it does not seem that this cansomehow affect binary options. 

The same opinion andleading market players. Some providers block access, buteveryone who wants it, however, finds it and loses it or wins money without any problems. In terms of logic, in the futurewe should wait for the regulation of this market. Legislatorsshould perceive binary options as OTC derivatives in acompetent manner. In this case, it will be fair to expect anincrease of trust on the part of traders amid the emergenceof exclusively respectable brokerage companies, sincebinary options from the point of view of many participantsin this market are good sources of income.

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