Binary options trading in India is a popular investment option that has been gaining momentum over the years. It is a form of trading where the trader predicts the movement of an asset’s price in the market. The trader has to choose between two options, either a yes or no, whether the price will go up or down. The simplicity of the trading process makes it easy for novice traders to start trading. However, there are risks involved in binary options trading, and traders need to conduct thorough research and analysis before investing their money. India has a well-established regulatory framework to govern trading activities, and traders need to ensure that they trade with licensed and regulated brokers to avoid falling prey to fraudulent brokers.
In this guide, we will share all the details you need to know to start binary options trading and our recommendations on where to go to start trading.
Binary options trading involves running trades that allow you to profit from the fluctuations in the prices of various assets, including commodities, stocks, indexes, and currencies (also referred to as forex pairs).
As a binary options trader, you perform a trade in which you assume that the asset’s value will be above or below a specific value within a certain period, which will expire. This simple yes / no context makes binary trading very easy to operate. As a result, many traders are now looking to online trade binary options in India.
For example, suppose the price of gold is currently $ 1,900 (about 140,000 INR), and you think it will rise to more than $ 1,950 at the end of the day. Then, you can buy a binary option from anywhere from $ 1 to $ 100 by betting on any result that you think might happen.
In addition to being a simple way to trade with binary options, you also get the benefit of not having to raise funds to purchase or retain the entire underlying asset.
As the term “binary option” suggests, there are only two possible outcomes in such a trade. Either the value of the asset goes above the predicted value, or it does not. Depending on the difference of opinion of the outcome, the price of the trading option and how much trading binary you can earn will vary.
If the asset reaches a specific value (also called strike price), you will get your money back and get a healthy return, often more than 60%, even up to 90%. On the other hand, if the assets do not reach that value, you will lose your entire investment. This is why binary options trading is often referred to as an “all or nothing” strategy.
Binary options trading is not legal in India. The Securities and Exchange Board of India (SEBI) has not approved binary options trading as a regulated financial instrument. In fact, the Reserve Bank of India (RBI) has issued warnings to investors about the risks associated with binary options trading. However, Indian traders can still participate in binary options trading through offshore brokers. It is important to note that trading with offshore brokers carries its own risks and investors should exercise caution when choosing a broker. It is always advisable to consult with a financial advisor before investing in any type of financial instrument.
Overall, these factors contribute to a positive trading experience for traders and increase their chances of success.
Pocket Option is an online trading platform that has gained popularity in India due to its user-friendly interface and wide range of trading options. The platform offers various financial instruments such as forex, cryptocurrencies, commodities, and stocks. It provides a demo account where traders can practice their skills before investing real money. Additionally, Pocket Option has a mobile application that allows traders to access the platform from anywhere. The platform is regulated and ensures the safety of traders’ funds through segregated accounts. Pocket Option also offers a 24/7 customer support team to assist traders with any questions or concerns they may have. Overall, Pocket Option is a reliable trading platform for Indian traders who want to invest in the financial markets.
The good news is that binary options trading is simple to begin in India. Here is a detailed procedure:
Open a brokerage account. To do this, you must travel abroad, although it is simple to do online. When selecting a binary options broker, try your best. Brokers who accept your deposit and keep your money are scams. Some brokers will keep your money and hinder your ability to profit. Here are some tips to avoid risks:
Choose the assets you wish to trade after opening a trading account with a binary trading firm. Most user interfaces contain a vast array of accessible options and resources. Make your predictions after analyzing pricing trends. With the finest trading firms, you may use interactive tools to experience the volatility of asset values. Decide how much you want to spend trading binary options. When you engage in binary trading, there is typically a selection tool that displays the results, cost, and prospective gains for you.
Use the internet trading platform to carry out the transaction. Wait patiently until the trade option’s expiration time or date. Then, either collect your payments and reinvest them, or cash them out. You can now start with lesser trades until you become proficient in this talent, but of course don’t forget to take into account the risk that you could lose the money you spent in that trade.
Our preferred binary trading app in India so far is IQ Option Broker. IQ Option Broker has been operating since 2014, and since then, it has accumulated more than 48 million users and processed more than one million trades daily.
The average processing period for withdrawal requests, according to IQ Option users, is 11 hours, so you can withdraw your money the same day that you submit your request.
Customer service is likely the best aspect for individuals looking to trade binary options in India. Customers in India can contact customer service by phone, email, and chat to converse in their own tongue without encountering language barriers.
Not to mention, IQ Option features a library of video training to assist you in developing a successful trader and a free test account. You may practice trading without putting any real money at risk with an IQ Option free demo account. For as long as it makes you comfortable, you can trade without any money.
Olymp Trade supports Indian traders just like IQ Option does. They acquired credibility by having a Facebook page with more than a million fans and a YouTube channel with 143,000 subscribers. The business is quite active on social media and throughout the world. It has a stellar reputation for swiftly and publicly resolving any customer service issue.
No matter where they are located, all alternative traders must provide identification proof. This is done to safeguard and save the trading platform from being used for illicit trade. Additionally, this procedure helps to guarantee that no one under the age of 18 is permitted to trade.
Olymp Trade, like IQ Option, also has a mobile trading app, which is useful for individuals who wish to trade binary options while on the go.
Indian merchants can use ExpertOption, but not citizens of all other nations can use it. When you’re ready to start trading options, you may open a free demo account and have access to 100 stocks and assets.
Additionally, the business offers phone and email customer service in Hindi.
Yes, to answer briefly. Declare your income on your tax return regardless of whether you use IQ Option or another broker. However, you won’t receive any formal documentation from these brokerages. Instead, you must keep track of your income and file your taxes using this documentation.
Whether you are a full-time trader or only do it occasionally will also affect how you pay income tax. Your profits if you trade for a living could be considered income. However, your payments will likely be assessed at the capital gain rate if you trade to supplement your income or as an investment. Ensure that you are not underpaying by seeing your accountant.
When all of the financial markets are open is the optimal time to trade. Even in difficult circumstances, change is possible in India every single day of the week.
You should be available Monday through Friday from 9 am to roughly 5:15 pm EST (Eastern Manic Time) to trade US-based stocks and all commodities.
GMT (Greenwich Mean Time) is from 7 a.m. to 3:30 p.m. for European markets.
The currency markets are open 24 hours a day, but traders from important nations like Australia, London, and the United States will work hard for you if you give them time to be online and active. This information can be obtained by examining the volume of trades that are currently taking place in your brokerage account.
In conclusion, binary options trading in India is a popular investment option for investors looking to diversify their portfolios. However, it is important to note that binary options trading comes with a high level of risk and is not suitable for everyone. Investors should conduct thorough research and understand the risks involved before investing in binary options. The Securities and Exchange Board of India (SEBI) has also issued warnings to investors about the risks associated with binary options trading. Overall, while binary options trading can be a lucrative investment opportunity, it is important to approach it with caution and make informed decisions.