The tighter the bid/ask spread the greater percentage of winners. For a given amount of premium traded, e.g. Fig.2 suggests 10,000 per month, the smaller the clients individual trade the greater the probability of the client losing since the compounding effect of trading against the house will increasingly offset the probability of the winning trades.Unfortunately only IG Securities and FX Trade Financial are up to being able to figure out the fair values of these strategies and subsequently the only brokers to offer these strategies. Over the eighteen months IG Securities has clients with a 31.5 win rate on average, while FX Trade Financials, over the twelve months they have been involved offering Touch Options average out at winning clients of 30.5.Nevertheless, good for FX Trade Financial for giving it a go. Seriously, how difficult is it to add the bid of an out-of-the-money put to the bid of an out-of-the-money call Do it and you have a bid price for the Range Options. Repeat the same exercise for the put and calls asking price and, hey presto, you have two-sided price for the Range Option. And you brokers who are not offering these fundamental strategies should hang your heads in shame (and then email me, I wont be cheap).Finally this market needs to be more competitive price-wise but this can only be achieved by better risk management. Risk management, as ever, becomes the keystone to a successful market-making operation, leading to a more competitive price offering, in turn leading to more clients, which in itself is the most efficient form of risk management. A virtuous circle indeedBinaryOptions will not be held liable for the loss of money or any damage caused from relying on the information on this site. The information and strategies contained on this website are the opinions of the author only. Binary options trading involves high risk and is not suitable for all investors.The Futures Financial Association of Japan (FFAJ) recently announced their data from June 2015 which has allowed there to be a comparison made between June and May of 2015. There were 56 members of the FFAJ that submitted their Forex results and 8 that submitted their binary options data. In the areas of both Forex and binary options, there was an impressive increase in these numbers.The total retail Forex trading volume from the month of May 2015 was JPY 424 trillion (USD 3.43 trillion). In June 2015, the total retail Forex trading volume was JPY 529 trillion (USD 4.29 trillion), an increase of an impressive 24.8 in just one month.The other increase that was noted was in the trading payment amount. In May 2015, the total trading payment was JPY 18.2 billion (USD 1.48 billion). The total trading payment in June 2015 was JPY 19.44 billion (USD 15.7 billion). This increase was by 6.2.Japan finally decided to implement a new law that legalizes and regulates binary options trading in the country. According to the new law, the Financial Futures Association of Japan (FFAJ) will from now on regulate the countrys binary options business and watch if licensed brokers follow all the prescribed regulations.Lawmakers have explained that they believe that such a measure is necessary in order to prevent binary options fro becoming a form of gambling. Experts, on the other hand, argue that a measure like this would actually negatively affect trader experience.The overwhelming majority of all brokers operating on the planet are OTC brokers. Japans decision to legitimize traditional binary options brokers is an important step for the business as some countries such as the US have constantly criticized this form of binary options.A major negative aspect of the new law is the fact that from now on brokers will not be allowed to offer deposit bonuses in order to convince new traders to sign up. Almost all brokers are at this moment offering so-called deposit bonuses to newly registering traders.A deposit bonus is a free money offer to traders on their initial deposit. For example, certain brokers will match traders first deposit with 100. So, in case someone deposits 100, he or she will get a total of 200 added into his or her online trading account.From now on, new traders will also have to pass a test before they will be allowed to deposit money and begin trading online. This test will assess their knowledge about finances and binary options. In case a trader will not pass such a test, he or she will be blocked from trading.Japans decision to regulate binary options is definitely a great event for the binary options business. As explained above, Japan effectively became the largest and most important country to decide to regulate this form of online trading, an event that might determine many other countries to do the same.On the other hand, experts believe that most of the regulations implemented were not through out good enough. Several measures are according to experts to strict that might make binary options less popular and less attractive in the country. For example, the ban on short expiration times might discourage a large number of professional traders.The ban on deposit bonuses might also discourage a large number of newcomers who might not be interested anymore in engaging into binary options. However, the biggest negative consequence might be the fact that a significant number of brokers might decide not to apply for a license and leave the country.A large number of brokers might even decide to continue to operate outside of the law without any valid Japanese license. Operating from offshore jurisdictions, these brokers will have the opportunity to escape these regulations as well as any legal consequences in Japan.A lot of traders might also be determined to register at these brokers instead of brokers with a valid license. As such, the regulation of binary options in Japan might turn out to be a failure in case regulators and lawmakers wont reconsider their position in the future.OptionsAdvice cannot be held liable for any damages incurred due to the usage of any information displayed on this website. The information and trading guides found on the webiste constitute the authors opinion only. Binary options involve high-risk and are not suitable for all investors.
