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There is now a CySEC (Cyprus Security and Exchange Commission) which is attempting to regulate the industry for those brokers within that jurisdiction. In the United States there is a relatively new broker called NADEX (North American Derivative Exchange). This Goal Profits Review  firm is fully regulated by the Commodities and Futures Trading Commission, a US government agency similar to the Securities and Exchange Commission. Binary option investing is so new that it will take some time to see how the regulatory environment actually pans out. Certainly it is fair to say that the legal trend is toward fully regulated firms which offer exotic option investment opportunities to eager clients within any jurisdiction.

Before we look at the upside of binary options let's take a look at the downside. Exotic option investing is not traditional investing. Some say it is very similar to gambling. I like the red/black roulette wheel analogy. When you acquire a binary option contract it will either win or lose at some point in time, depending upon the expiration time of the deal. Many of the option brokers now promote 60 second contracts. A fair assessment would be to call such a contract an investment/gambling hybrid. In fact, it could be argued that any Wall Street investment is really nothing more than an elaborate gambling scheme. Unlike traditional option deals, where each contract controls a certain number of shares, there is no leverage with binary options. With this type of option you cannot exercise the options. Thus you have no right to the underlying asset. The option is strictly used to generate income for the holder.

There is no liquidity with binary options. There is no marketplace to sell these unexpired contracts. Once you purchase the contract you are in for the duration. Some brokerage firms are starting to experiment with liquidity, offering to either buy back certain of the contracts under certain conditions or find buyers willing to take over unexpired contracts. It will be interesting to Goal Profits see how the industry evolves in terms of such an after-market. Another downside for binary options has to do with the losses. To truly make money in the long run you have to be a skilled investor with high win to loss ratio. Because when you lose with these options, you lose really big, upwards of 90%. Some brokers are now returning 5% to 15% on the losses. This is probably just a marketing ploy to get you to stick with them. But depending upon the size of your account and the size of your trades it could help with another trade.

Unfortunately the mainstream financial press doesn't have much to say about the field of binary contracts. Dr. Jon Najarian, a host of the CNBC television program "Fast Money," calls binaries "training wheels" for getting involved in traditional options. Najarian says that binary options will have wide appeal to "individual investors, hedge funds and institutions, who have an opinion, one way or another, on future price movements." An article entitled "Don't Gamble on Binary Options" appeared in Forbes magazine in 2010. Gordon Pope, the author, spent two pages convincing the readers to stay away from binary options. He closes the article out by stating that "If people want to gamble that is their choice. But let's not confuse that with investing. Binary options are a crapshoot, plain and simple." It is unfortunate that Pope places binary options in such a negative light. He fails to mention that virtually all types of investments are a crapshoot.

http://rockthestockreviews.org/goal-profits-review/

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