The National Stock Exchange has warned investors. The NSE said it would avoid investing in non-regulated products. Investors should avoid the difference and binary options options from internet-based trading platforms.
In a statement on Monday, NSE said investors would fall into the trap of a huge profit promise from these platforms. Eventually they will have to suffer heavy losses. Keeping this in mind, the exchange said investors have been advised to refrain from investing in such products.
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The National Stock Exchange has noticed that some arbitrary platforms or websites offer derivative products … Contracts for Differences (CFD) or Binary Options. Keeping this in mind, the exchange offered this advice. In market terms, CFDs are called contracts between buyers and sellers. Under this, the buyer must pay the seller the difference between the present value of the property and the value at the time of the contract.
There is a fixed payment under binary options. In this, investors predict one of two possible outcomes. If his assumption is correct, the investor receives a fixed payment, but if his assumption is false, he loses his initial payment.