Is Binary Options trading illegal in India?
Hello.
My question is : Forex trading of currency pairs not involving INR is illegal in India, but is Binary Options trading illegal in India?
Difference between Forex trading and Binary options
Forex :
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 :
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. You do not have to buy the currency. 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.
Also Margin is not used when trading Binary Options.
Also, trading Binary options is not Gambling. When trading binary options, technical analysis is done on price charts to predict the movement of the price of an asset, whereas in Gambling, there is no such thing as analysis.
Can you kindly answer my query. There is a lot of confusion regarding this.
Thank you.