Own A Piece Of Binary.com

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Own A Piece Of Binary.com

Want To Make Money With Binary Options? Own A Broker

If you haven’t noticed there is a new trend in the financial world and binary options is not amused. I’m talking about cryptocurrencies, block chains and ICO’s. While speculators, traders and investors make and lose fortunes in the blink of an eye businesses of all variety are looking for ways to leverage the technology. We’ve already seen the emergence of crypto-based trading platforms and a general shift toward cryptocurrency trading among the brokers. Now we are about to witness the first ever ICO of a broker.

No, this is not like the OTN or Spectre networks. Both of those are block chain based trading technologies coming from know and well established binary options providers. OTN is a stand alone technology that IQOptions has invested in. Their timeline includes establishing IQOption as a crytpocurrency wallet, exchange and trading venue. Spectre is very similar, the difference is it is a white label solution for businesses to build block chain trading businesses upon.

An ERC20 securities token

Jean-Yves Sireau

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Jean-Yves Sireau

Binary.com will be performing an ICO from 15 November to 25 December 2020, offering up to 10 million tokens which offer two exclusive rights: (1) the right to receive dividend-linked payments, and (2) the right to convert tokens into ordinary shares of the company. In practice, the tokens will be economically equivalent to ordinary shares of the company.

Binary.com’s ICO is in effect an “IPO on the Blockchain”. The reasons why we decided to go down this route instead of a traditional IPO are explained in the blog post Why we are doing an ICO (and not an IPO).

Whereas 2020 has been the year of the “utility token”, we believe that 2020 will usher in the era of the “securities token”, where an increasing number of companies worldwide decide to list on the blockchain directly, bypassing the often archaic and expensive traditional stock exchanges.

ERC20 securities tokens however need to implement quite a number of features that are not required for utility tokens. Indeed, companies listed on the blockchain will need to be able to perform the full gamut of corporate actions that they would have been able to perform if they had opted to list on a traditional stock exchange.

For this reason, Binary.com decided to adopt the Mini Me ERC20 token. This token provides unique features that are appropriate for a securities token. One of its most important features is the ability to clone itself at a given block count, effectively creating a “mini me” version of itself. It is this ability to create clones/forks of the token that becomes useful to implement the common types of corporate action, as detailed below.

Note: Binary.com tokens will use the symbol BINARY.

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Dividend-linked payments

The Binary.com tokens entitle the holder to receive payments equivalent to the dividends paid on ordinary shares of the Company. To implement the dividend feature, Binary.com will clone the BINARY token at a given block height. The cloned token, which all BINARY tokenholders will inherit, will represent dividend rights.

By way of illustration, Binary.com may declare a dividend of $0.02 per share, payable at Ethereum block height 4518852. The symbol for this dividend right would be BINARY_DIVIDEND_USD2c_4518852. This token is essentially an IOU for $0.02 payable by Binary Group Ltd. (Note: this is by way of illustration only; actual dividend amounts and block heights will be declared by the company in due course over time). Concurrently, the same amount of dividend will be paid to shareholders of the company.

Tokenholders would have two possibilities to cash out this dividend right: (1) they could trade the token on a cryptocurrency exchange (if it gets listed) – in which case it would be natural to expect that the token’s value would be essentially fixed at $0.02, or (2) they could redeem the token for $0.02 (or equivalent in other cryptocurrency) from Binary Group Ltd.

In regards to (1), the dividend rights become in effect freely tradable fiat currency-backed IOUs, similar to Tether tokens.

In regards to (2), i.e. redeeming the dividend right token from Binary.com, the tokenholder would need to log into his Binary.com account, ensure that his/her account is authenticated (to fufil KYC – Know your client requirements), and then deposit the dividend right using the facilities provided. Once the dividend right is deposited, $0.02 per dividend right token will be deposited to the user’s Binary.com USD account.

Voting

The BINARY token is governed by a Token Instrument, which may be amended by majority vote of the tokenholders. Such voting shall take place by cloning the BINARY token to issue voting rights.

Such voting rights may be exercised by tokenholders by sending the token either to a pre-defined “Yes” Ethereum address or a pre-defined “No” address.

Mergers and Acquisitions

One reason why companies list on a stock exchange is so that they can use their listed shares as ‘currency’ to acquire other companies (or sometimes to merge into them). This is done by issuing new shares as payment for the acquisition of the shares of the other company.

On the blockchain using the Minime token, such acquisitions would be performed by issuing new tokens using the generateTokens() function. Typically utility tokens don’t have such a function, because they are part of a closed ecosystem where issuing new tokens would unfairly dilute existing tokenholders. The issuance of new securities tokens in an acquisition does dilute existing tokenholders, however the benefit is that the company now has larger assets due to the acquisition. i.e. smaller percentage of a larger pie.

Change of symbol

Although it is unlikely that Binary.com would need to change its token symbol, a symbol change could be performed by cloning the BINARY token, with the clone having a new symbol, and then destroying the original BINARY token.

Rights issues

As described in Wikipedia, a rights issue is a dividend of subscription rights to buy additional securities in a company made to the company’s existing security holders. It is a non-dilutive pro rata way to raise capital.

Rights issues would be performed on the blockchain by cloning the BINARY token at a specified block height, hence creating the Right. Such Right may be exercised by sending it to a specified address/smart contract with a sufficient amount of Ether attached to exercise the Right under its terms. The MiniMe token doesn’t currently support this, hence a new token would need to be created that would fork the BINARY token.

Warrants/options

The issuance of warrants or options can also be performed by cloning the main token and providing a smart contract for the redemption of the warrants or options. Since the MiniMe token doesn’t directly support transferring Ether alongside the Token, as per the Rights Issue case a new token would need creating to implement warrants/options issuance.

VPS Binary Options Trading

Trading Binary Options can be a time consuming affair. You need to constantly monitor your positions and take the time to understand the dynamics involved.

In fact, trading Binary Options can be a full time affair with those that have experience in the industry benefiting the most.

Indeed, some of the best Binary Option Professionals on the market make use of a powerful tool that is actually available to everyone. Yet, most people shy away from these tools as they appear slightly complicated.

One of these tools is a VPS, the most important piece of trading technology available to the Pro.

What is a VPS

A VPS (Virtual Private Server) is a remote virtual machine or computer that is usually used in the web hosting business. However, as people have been developing automated tools that required a machine that was dedicated to that task, the VPS has expanded beyond web hosting.

One of the automated tasks that people tried to allocate to a VPS was algorithmic trading. This was in fact something that was always present with algorithmic hedge funds who had their own dedicated servers that did the trading.

However, there were many traders who developed their algorithms but did not have the benefit of a dedicated server in an office. These could not run the algorithms on their own personal machines. This was because they did not have the computing or networking power to complete the tasks required by these algorithms.

It was as this point that these traders decided to rent the computing power that they required for this. Ever since then, most serious Forex brokers began renting VPSs that traded for them.

This was also most recently replicated in the Binary Options industry as those same forex traders recognised the benefit of VPS Binary Options Trading

What are the benefits of a VPS?

Many traders may be asking why they need to trade with a VPS? This comes down quite simply to your goals as an algorithmic trader. Yes, you can run a trading algorithm on your laptop assuming that you have the programs running 24/7, but this is indeed unrealistic.

Moreover, the speed of the internet in your home network is not even in the league of that in a highly connected data centre where the VPS is held. This is especially important for the trader that needs to enter their trades in a limited window when an opportunity for entry opens.

Here are the benefits of VPS Binary Options Trading with your algorithms.

Trade at all times of the day

The advantage of the VPS is that you can leave it running 24/7. Unlike with your home PC, a VPS can be left on for extended periods of time and does not require being restarted regularly. Once you have logged out of your VPS and set the trading algorithms up, it gets to work trading.

Trade from Anywhere

One of the many reasons that people choose to trade Binary Options is because they are able to trade from a number of different locations around the world. Trading Binary Options allows them the benefit to travel the world and log in to trade their accounts. However, for the algorithmic trader who uses advanced trading technology, it can be hard to just pick up and travel if you have your PC trading in an automated fashion.

When you are VPS Binary Options Trading, there are no restrictions on where you can go and what you can do. The VPS is held in a data centre and you can access it from any location in the world through a remote desktop connection. The trader can log into the VPS in the evenings and check the trading positions, make tweaks and continue with their travels.

Trade despite Outages

We can all admit that there have been times when we have been unable to trade due to either power outages or network downtime at our houses. This is indeed quite frustrating as there is nothing worse than losing connection to a platform when your broadband falls or you have an electricity cut at your home.

A VPS is held at a data centre which has to have completely uninterrupted power supply as well as network connectivity. Hence, you will not have to ever worry about potential downtime on your positions.

Enhanced Security

If you were worried about any sort of security issues when trading your account on a VPS, this is unnecessary. In fact, the VPS and the data centre are likely to have much better security protocols than you have on your home PC.

Due to the fact that these VPS servers are used for web hosting and other business critical purposes, the security and anti-malware systems in place must be extremely robust. Hence, you can feel pretty assured that the VPS that you are renting will have the latest in security and antivirus protections.

How Choose a Binary Options VPS

Setting up a VPS usually requires the trader to rent a VPS from a Hosting provider. The trader could either order a standard spec VPS from a hosting provider or rent a specialist Forex or Binary Options VPS. The latter could be an option should you wish to include a number of other services on the VPS such as EAs or other trading programs. The VPS provider can assist you setting this up. However, regular hosting can be cheaper and there is more scope for tweaking the offering.

If you are going to be using a normal webhost, you will need to decide on the software that you want on the machine. In terms of server operating systems, the two most used are Linux and Windows. Hence, the trader could either rent a Windows VPS or a Linux OS based one. It is important to point out that the server choice should depend almost exclusively on what software is best known to the trader.

The trader should also determine the technical requirements on the server such as Ram, Hard drive and CPU power. Of course, if you are only going to be using the VPS for running one programme then the entry level server would work. If you want minimum latency on the orders then you should consider ordering a server that is located in a data centre that is relatively close to your broker.

How to set up a Binary Options VPS

Once you have purchased the VPS, you will be sent the login details of the machine via email that will enable you to access the server and connect to the machine. Once you have remote access to the VPS, you can download and install the Meta Trader that is applicable to your server operating system.

If you are running another trading script then you will need to see which server software that it is best suited too. Once the trading programs have been installed, you need to log into your account while on the VPS and set the trading parameters as you would if you were using your normal PC.

You can then simply close out of your remote desktop connection and allow the trading algorithms to operate. It is of course wise to check in on your account every 24 hours just to make certain that the algorithm is trading in a reasonable fashion.

Although the VPS should theoretically be on 24/7 there do come times when the server provider reboots the PCs just to make sure that they are up to date with the latest software etc. This is, however, only done on weekends in periods of least traffic or usage.

How to use your VPS

Once your VPS is up and running and you are ready to start trading remotely, you have to decide on what you would like to use the VPS for. In the case of the of a Forex trader, you may want to use it with Meta Trader 4. This could allow you to either code algorithmic trading scripts that make use of signals or you could make use of an Expert Adviser.

Alternatively, if you are trading binary options, you could make use of signal services that trade on a VPS in an automated fashion. These allow the VPS trader to make use of third party signals that can trade on their account with the VPS that they have set up. This will usually be on the third party’s dashboard where the signals are then replicated on your trading account by using the broker’s API.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

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