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TradoLogic Says Not All Binary Options Are Equal

TradoLogic, a leading provider of software solutions to industry the binary option trading, has just done regulators all over the world a favor by splitting the binary option instruments into two categories: financial ones and gaming ones.

 
We all know that binary options inhabit the zone between financial and gaming instruments, and regulators across the globe have been in doubt how to treat them. Cyprus Securities and Exchange Commission (CySEC) has been the pioneer in treating the binary options as financial instruments and lately this approach has been gaining popularity, with Malta also adopting rules that regard binary options in the same manner. 
 
More importantly, however, the bulk of rules treat all types of binary options equally: the sole exception are binary options with very short expiration times (60 seconds, e.g.) - they are simply banned. 
 
But TradoLogic has made a very diligent move and is showing regulators that various types of binary options should not be treated equally. Instead, there should be the following classification:
 
Financial instruments: Binary 100; Touch & No Touch; In & Out; and Ladder (Multi Strike).
 
Gaming instruments: Digital; One Touch; Range; Matrix; Turbo; Triple (Multi-Trade); Private Options.
 
The company explains the division by the differences between the two industries:
- different option live times: fixed in finance; floating according to a gamer's request in gaming;
- different strike prices: fixed in finance; floating or fixed in gaming;
- bid/ask parameters: both should be offered in finance; only one may be offered in gaming; 
- different odds: floating in finance; fixed in gaming.
 
That was the reasoning of TradoLogic, but the way I see it the gaming options simply require less knowledge and are riskier than their financial counterparts. It will be interesting to see a regulator adopt a similar approach and let gaming binary options free of some requirements. Future will tell.
 
 

About TradoLogic 

 
TradoLogic  is a company founded by the pioneers of the binary options trading. Nowadays, the company is the global leader in this field. The company’s success is based on its constant effort for improvement and strives for excellence. TradoLogic develops innovations and creative products that can satisfy the wants and needs of all the company’s clients.
TAGS: tradologic  tradologic forex software provider  tradologic binary options  binary option classification  binary option regulation  financial trading  binary option trading  gaming  gambling 

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