Binary options wiki
UK regulation changing[ edit ] The UK is in the process of moving the regulation of binary options to the Financial Conduct Authorityrather than as gambling. This is to close a loophole. Some other EU countries regulate binary options via their financial authorities, and once allowed in the EU, binary option brokers can operate anywhere in the EU. This allows regulator shopping, where a binary option broker can find a friendly regulator country and then operate EU-wide.
See Banc de Binary and these articles on binary options scams. The final rules are supposed to be published on 3 Januaryto take effect on 3 January The binary options article probably should be updated early inwhen the new rules are out.
The new reg will likely be good, taking the uncertainly out of who regulates them. As of last May it looked like it was increasing the uncertainty. I'd still leave out the section until the change comes to pass.
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- Ну что ж, он принимает эти условия.
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Let's see what comes out in January. Wikipedia has an article for MiFIDbut it hasn't been updated and is out of date.
A good project for January. Someone seems to be trying to get a message across, but failing because of language problems. Can you tell binary options wiki what you are trying to do? John Nagle talk20 December UTC While this page has been invaded by PR and salespersons, the fellow is different as he appears to be simply driven by some theoretical reluctance in accepting the product as a genuine economic transaction. It may be valid, but he needs to refer to something other than a 19th century philosopher.
The IP editor has inserted "Binary options don't represent investments but are the means for trying to do money with money, without any substantial activity, representing from a human perspective a wrong behaviour on ethical-moral grounds. The UK currently considers them gambling, which is causing single-market trouble because other parts of the EU consider them investment.
The US considers them illegal if the counterparty is the "broker", which is why Banc De Binary is in trouble. In binary options wiki case, we need to hear from the IP editor.
The article has been semi-protected for a week in hopes that they will communicate. If you're the IP editor, please comment here. John Nagle talk21 December UTC One cannot question binaries without questioning all financial products and mathematical finance.
Talk:Binary option Get started with 3 easy steps: If a customer believes the wiki of an binary option will be above a certain price at a set forex, the trader buys the big option, but if he or she option it will be below that forex, they sell the option. Investopedia described the binary options trading process in the U. This is called forex "in the money. This is called being "out of the money. The bid and offer fluctuate until the option expires.
Mathematically, a binary is the building block of all financial products, so there is not binary options wiki difference between a binary and a stock, a stock being an infinite sequence of binaries, with a strike price at every "tick". We use binaries as "atomic securities" to price markets. Maybe all of math-fin is bad, and all finance is bad, all markets are bad, according to some higher moral criterion, but questioning binaries without questioning other trading instruments and markets in general is inconsistent.
But I agree that betting parlors should not be binary options wiki place for binary options; these should be part of general regulated markets though this is my personal opinion.
Limit-theorem talk21 December UTC Removing the equations[ edit ] Someone has been removing the equations on grounds of "overkill".
Simply put, binary option acts as a financial instrument for profit making in trading or risk hedging. When client buys a binary option, he has the opportunity to choose the term of the option expiration and to know in advance how much revenue he will receive if his prediction would be correct. The main advantage of binary options trading is to know in advance how much money client will receive in case of success or the amount of loss in case of failure. This currency pair is trading at 1. By investing in binary options, there are only two available options: Call and Put.
It makes absolutely no sense. This is an encyclopedia and we send students and trainees to get formulae from Wiki. When you google the page that's what you get. The formulas need to be reinstated. I will revert unless there is a specific spot where these formulas are found. Maybe we should take a stronger line in the lede. We should distinguish between real options, where there's someone on the other side of the trade other than the broker, and bucket-shop operations, where the other party is the broker, acting as the "house" in a gambling transaction.
Regulation and fraud[ edit ] Further information: Securities fraud Many binary option "brokers" have been exposed as fraudulent operations. Manipulation of price data to cause customers to lose is common. Withdrawals are regularly stalled or refused by such operations; if a client has good reason to expect a payment, the operator will simply stop taking their phone calls. Provincial regulators have proposed a complete ban on all binary options trading include a ban on online advertising for binary options trading sites.
The US doesn't allow those. See Banc de Binary. That's pretty much what every reliable source that isn't selling binary options says.
If you want to argue against this, do so here. John Nagle binary options wiki10 April UTC More Times of Israel articles: "Ex binary options salesman - here's how we fleece the clients"  "Every single client with whom he worked ultimately lost all of their money.
In practice, binary options wiki seems that most binary options are scams. John Nagle talk10 April UTC I agree with the discussion; just something cosmetic: I find it preferable to not use "scam" as it is not very defined and instead resort to "questionable operation". This is way beyond "questionable".
The Times uses the term "scam". Thesaurus results: fraud, swindle, racket, trick; binary options wiki, flimflam, bunco, grift, gyp, cheat, deceive, trick, dupe, hoodwink, double-cross, gull; rip off, con, fleece, shaft, hose, bilk, diddle, rook, gyp, finagle, bamboozle, flimflam, hornswoggle. The Times article points out that the binary option industry uses extensive SEO operations to make the top results for binary options look legit.
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Wikipedia shouldn't be a part of that. So I see you mean prone to fraud or exploited by fraud operators such as Banc de Binary and similar sham outfits. Will look at a phrasing that reflects that.
Limit-theorem talk11 April UTC In the US, any option, binary or otherwise, must be traded on a real exchange, with an identifiable independent counterparty on the other side of the transaction. This is much less profitable for the "broker" than running an operation where the customer bets against the "house" and the broker controls the odds.
They list all the transactions each day. How to express this? Anyone else have an idea?
So not all nonlisted is in bucket ships. We should mention that.
Do institutions actually trade binary options? I tried searching Google for "institutional investor" "binary option" and got nothing but spam and PR. The web is biased to news. Searched for "interbank" and "binary", but got nothing binary options wiki spam sites. There's an organization called "Binary Interbank", with a Facebook page and a web site that's down. Not finding anything useful.
Found a lot in google books and google scholar but not in web. Added structured notes. Limit-theorem talk11 April UTC There are lots of papers on binary options from a theoretical perspective, but not much on them as an actual finance tool. There has to be an active market with significant market depth if they're to be used for corporate finance hedging.
Is there any indication that such a market exists? CFTC complaint. Twitter has been now implicated in promoting binary option companies. Making the lede binary options wiki about the binary[ edit ] A binary option has a mathematical importance as the density of the risk neutral distribution.
So the lede should distinguish between its theoretical and gambling roles.
Binary Options Wiki
I teach students binary options and link to this page and want to make sure they do not get confused with this gambling and shady aspect of the binaries. The recent change to the lede looks a bit like trying to obfuscate the fraud aspect.
But we do need cites to show that binary options are an actual financial product used by institutions, if you want to claim that. Here are today's transactions on Cantor's binary option exchange.
Binary option wiki
NADEX isn't doing that many transactions, either. A dice is a gambling instrument with shady characters involved but for us it is with coin flips the building block of probability for pedagogical reasons. So most of binary options wiki interest in binaries in in the theory not the execution, as a pricing tool for financial derivatives as they deliver probabilities while regular options don't. I would be happy if they banned binaries just as probabilists would not mind if casinos were closed.
Maybe we need two pages, one for theory the other for gambling Incidentally I have reverted every advertisement by Banc de Binary and similar firms in the past two years to avoid polluting the page.
Although, for most binary options, the time to maturity period is so short binary options wiki, sometimes seconds that a Black-Scholes analysis is not meaningful. The confusion may come from the fact that the hedge ratio blows up close to maturity, around the strike, hence the Binary options transactions from 10 cents no longer work.
To explain once again: is a theoretical construct that is invariant to expiration: regular options are sums of binaries. Limit-theorem talk14 April UTC Binary option convention[ edit ] The binary options industry has a trade convention. There was also a note that SpotOption the binary option platform invented binary options, but the cited source was anonymous. The anon IP resolves to the University of Waterloo.
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Possible WP:OR. The Black-Scholes model math needs work. Currently, the article claims that a common binary option which pays out if the underlying asset is higher at the end of the option period should be valued at C.