Distribution

Hitherto, if one ignores fixed odds sports betting, binary options have
been very much the preserve of the financial OTC (over-the-counter)
market. Financial and commodity derivatives markets generally restrict
themselves to offering futures and conventional options while the stock
markets offer shares only. One must suspect the omission of binaries from
derivatives markets has been an oversight, while from stock exchanges
one suspects an attitude bordering on snobbery owing to the speculative
nature of the instrument.Whatever the reason, these exchanges are likely
to watch in awe as the trading volumes on binary/betting exchanges soar.
What are the grounds for such an assertion?
The following points explain why this instrument will see the same
exponential growth that futures/options exchanges did throughout the
latter half of the 1980s and most of the 1990s. The basic tenet springs
from the fact that since binary option positions create a quantifiable
maximum downside risk, this results in: