Is binary options trading legal in India?

asked Monday, May 28, 2018

A binary option works like a bet wherein a trader has to put his bets on the price movement of the underlying asset. As the name suggests, there can only be two outcomes in the trade- gain or loss. In binary option, a trader makes a profit if an option expires 'In The Money (ITM)' i.e. price of an underlying asset closes above strike price and incurs losses if the option expires 'Out of the money (OTM)' i.e. price of the underlying closes below the strike price.

As per RBI guidelines, binary trading is not legal in India. However, Indian traders who wish to trade in binary options can do so with an offshore options broker.

answered Monday, May 28, 2018

2 Comments

2. rajinder

| Link|April 6, 2022 9:02:27 AMReply

Sir can you explain it...The binary trading is illegal in India. “The RBI cautions the public not to undertake forex transactions on unauthorized ETPs or remit/deposit money for such unauthorized transactions. Resident persons undertaking forex transactions for purposes other than those permitted under the Fema or on ETPs not authorized by the RBI shall render themselves liable for penal action under the FEma.”

Is there any penalty or prosecution for transferring the amount to a trading app like octafx, quotex? even if they have Indian bank transfers enabled?

I think it is a serious matter...if there is objection by SEBI then there is a 3 times penalty for transactions.

So all our work will be lost.

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| Link|April 14, 2020 11:26:59 AMReply

sharing valuable information. looking forward for more updates
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Is binary options trading legal in India?

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