Most people don’t realize this but not so long ago binary options were only available ‘over the counter’ and had to be obtained directly from the issuer. Needless to say, there trade of these options was virtually non-existent up until very recently when technology started to provide some better solutions.
Beginning of Binary Options Trading Platforms
The trading platforms that are widely used today only actually began to exist in mid-2008. That year, the Securities Exchange Commission (SEC) endorsed binary options after a request was put in by the Option Clearing Corporation to enable its trading in 2007.
Following this and the creation of the American Stock Exchange – trading took off. In no time at all, various trading platforms had surfaced online that allowed regular Joe’s to trade these options with ease.
Needless to say, without the internet this sort of trading may not have become as widespread as it has. Because the internet offered an easy and convenient way for people to gain access to the market, it was able to attract a wide variety of traders across different backgrounds.
The nature of the trading platforms themselves slowly evolved as time went by too. From solely consisting of websites that facilitated trades, today’s trading platforms now provide market and trend analysis too. Some platforms even allow virtual trading and other features.
Future Impact of Technology
The last few years in particular have seen the rise of high speed broadband that has improved the speeds at which people access the internet. This definitely has and will continue to have an impact on trading in general – binary options included.
Being able to make split-second trades that are close to instantaneous is definitely something that has changed the market in many ways, and is probably the largest impact that the internet has had on trading. Granted in binary options trading there is a fixed duration and so that impact is slightly more muted – but it still exists.
The increasing number of different platforms that exist definitely make this a client’s market however. Over the years some platforms have attracted bad press for failing to warn their users of the risks involved in such trading, but there are many others that are good, reliable and have sterling reputations.
Long story short, it could be said that the rise of binary options trading is intricately linked with the technology that enabled it to do so. Without the internet and the trading platforms that have enabled it to reach such a widespread audience, it is difficult to envision it enjoying its current popularity.
Of course, credit has to be given to the nature of this sort of trading itself which many consider a lot easier to understand – even for relative beginners who have no prior experience in the stock market.
As technology progresses, it is a safe bet that the trading of these options will progress with it and draw strength from its advances just as it has in the past.
This article is written by Akshay from GetPRed.com and an avid blogger and the author of this post. He has been using the Binary Options Brokers for a smarter and efficient way of making profits.