Most trading markets are heavily regulated by national governments or related departments, but Forex is decentralized. There is not a regulatory agency that is responsible for regulating all activities that take place on the Forex. However, in many countries, there are governmental regulations and regulatory or oversight departments that enforce those regulations.
It is important to note that a Forex brokerage firm in a foreign country can actively work with investors from other countries, and this means investors who reside in a country with Forex regulations in place may still be exposed to risk from unregulated activities if they do not pay attention to which broker they work with. You can research the location of the headquarters office for a Forex brokerage firm, and you can determine which regulatory agency may be responsible for overseeing the activities of that firm. You may contact the agency directly to inquire about licensing compliance, consumer complaints and other information that may be useful to you when you are deciding which Forex broker to work with.
Just like other binary options, an investor may also decide that an asset-or-nothing option will not do well. In this situation, known as a asset-or-nothing put option, the investor wants the market price to stay below the initially agreed upon strike price. Unlike with call options, though, a trader may not be especially happy if the invested intelligently and then have to settle for whatever low price the asset had reached by the expiry date.
In these instances, a fixed price, which is known before the actual investment is made, is paid off rather than a price tied to the market value of the underlying asset. This gives a trader just as much incentive to invest in put options as they have for call options.
