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A binary option is a financial product where the person buying it receives either a payout or they lose their investment based on if the prospect has expired. A simple option contract that has a fixed risk and reward, it’s often regarded as an all-or-nothing deal. 

Various Platforms like IQ Option, Olymp Trade etc are available on app stores and also claim to provide a trial account wallet worth of USD 10000. 

Types of binary options 

• High/low option (above/below option): This is the most popular type of binary option. An investor bets on the underlying asset going above or below the predetermined price at the time of expiration. 
• Touch option: An asset will touch the strike price at the time of expiration. 
• Range option: The asset is in a predetermined range by the time of expiration. 

• 60 seconds option: As the name suggests, the 60 seconds option expires in 60 seconds from the time of purchase. A trader in the 60 seconds option should be quick and adequately backed up by a trading software with a best-in-class charting program. 

Payout Options on the platforms 

• Credit/Debit Cards – Linked Via Mastercard,Visa, Amex/ Bank Issued Cards 
• E-Wallets  

• UPI – Only on Olymp Trade 
• Cryptocurrency – Ethereum, Bitcoin, Litecoin etc (Most common payout option) 

Advantages to binary options trading 

• One knows the risk and reward in advance, or at the time a contract is struck. 
• Binary options expire quickly and can generate substantial returns with a few quick, successful trades. Expiry period could range from 15 minutes to up to a week or two. 
• Investments could be as little as $10 (750 Rs) 
• Binary options provide an opportunity to trade with a wide range of assets available all over the world. 

Disadvantages of binary options trading 

• Since some of the binary options brokers are loosely regulated, you might face the risk of losing your money if your broker opts to hoodwink you. 
• Since binary options trading is more of a speculative activity, despite the research and analysis going into it, the outcome of the investment is not always a certainty. 
• Earnings potential is limited relative to the movement in the underlying asset. Despite whether an underlying instrument moves $1 or $100 in the desired direction, your return is limited to the price of the binary option. 

Is Binary Trading Legal in India? 

No, it’s not legal in India and the RBI has issued press releases on caution towards unauthorized forex trading platforms. 

Links for Press Releases from RBI: 

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8427&Mode=0  

(Sept 13,2013) 

https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53216 

(Feb 03,2022) 

How do they promote? 

Binary Trading apps promote through advertising and word of mouth. The advertisements are commonly found online through pop-up adverts in mobile applications, browsers, YouTube videos etc. 

For word of mouth promotions, it is done through collaborations or sponsorships to influencers through which a shoutout along exclusive limited period links/codes aimed towards the followers.