Details about binary options - information about the ban and alternatives
Binary options have been very popular for a long time. This was for several reasons: they are easy to understand and there are many markets to trade. They also offer top winnings for a relatively low stake. But that's exactly where the danger lies:Binary options can cause high losses in a short time. Therefore, trading for private investors is prohibited.
A frequent point of criticism was that binary optionsremind more of online casinos, especially the betting on black or red in roulette. But that is of course a completely different topic, and if you are interested in it, you canfindreputable online casinos in the test in another area of our website| ||50.
Ban in Kenya
The Federal Financial Supervisory Authority announced in apress release that that it reacts to the expiry of the product intervention measures of the European Securities and Markets Authority - ESMA for short - and continues to prohibit themarketing, distribution and sale of binary options to retail investors. The reason for this is that they are toocomplex and not very transparent.
The brokers act as a kind of alternative to the traders who || |63dann Gewinne erzielen, wenn die Kleinanleger Geld verlieren. The brokers are significantly involved in the pricing of the underlying assets, with traders being able to understand them in very few cases.
Binary options: What is that?
Binary options - or digital ones Options - get their name from the mathematical binary system. This describes the states with 1 and 0. Since the investors bet on whether the price of an underlying asset will fall or riseob ein Kurs eines Basiswertes fällt oder steigt and thus bet on whether an event will occur or not, one speaks of binary options. Base values that are traded in binary options include: commodities, stocks, indices, bonds and foreign exchange.
The following is important to mention: Binary options have no intrinsic value, but only work with the rates above mentioned financial instruments. Traders bet money on whether a pricedecreases or rises during a predetermined period of time – higher or lower than at the time of the trade. If the prediction is wrong, the state of the binary number is 0 and the capital is gone. However, if the trader is correct, state 1 occurs and the return set in advance is paid out or used for the next trade.
The terms can vary greatly. There are options with terms ranging from as little as a minute to a month, which is the most common term for digital options. The simplicity and short maturity are part of the reason for the popularity among small investors, as well as the fact that not much capital is required. However, these are also the reasonswhy binary options trading is so dangerous and why these are ultimately banned for retail investors in Kenya.
What alternatives about binary options?
Since binary options are banned in Kenya for retail investors, here below are somebinary options alternatives if you are using want to use a little risk money to make a profit in the best case.
CFD – the contract for difference
CFDs –Contract for Difference very similar to binary options. Here, two parties agree on the performance of underlying assets. Against a security deposit -Margin - the price development is bet on. Highly recommended is ourComparison of the best CFD brokers. For a long time there was a so-called obligation to make additional payments in this context, but this no longer exists for small investors.More information about CFD brokers without obligation to make additional payments, can be found on the special page on this topic.
There is no direct access to interbank trading or to the currency futures market, since the volumes traded there is just too big, but theForex Broker appear. These allow small investorsindirect access to this foreign exchange market. If you don't have that much experience, you shouldtake a look at the best social trading providers.
A securities account is an account that enables the purchase, sale and transfer of securities. In this context, traders shouldalways work with reputable brokers. However, since there are always black sheep in this area, you should always opt for reputable brokers.You can find the best securities account brokers on the corresponding page.