Free stock options trading information
Cyprus, Japan and South Africa already have some form of regulation in place for binary options, but more needs to be done. This means that they derive their value from that of an underlying investments price-commonly a stock, commodity, or currency in the global capital markets. They are essentially a contract where the holder buys the right to purchase or dispose of the underlying asset at a predetermined price (referred to as the strike price) over the life of the option-it will typically range up to a year from the contract issuance date depending on the asset.
This shows the high risk nature of the investment.