Bombay: The national stock market exchanges NSE and BSE have advised traders against trading unregulated derivatives. Both BSE and NSE have said they have noticed unregulated platforms offering trading in certain products called “contracts for difference” (CFDs) or “binary options”.Also Read – PS5 Restock: Sony PlayStation 5 Preorders In India Will Be On August 26
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- “Investors plagued by promises of high or sky-high returns from these websites or platforms can potentially lose money,” said NSE, BSE Advisory, according to the IANS report.
- “Therefore, investors are advised to refrain from trading or investing in unregulated products such as CFDs or ‘binary options’ offered by such unregulated internet trading platforms,” according to the IANS report.
- In this type of trading mechanism, no physical goods or securities are delivered because the full transaction for the day is settled in cash and this depends on certain conditions, IANS reported.
- “Both exchanges – NSE and BSE have cautioned against certain unregulated platforms and websites offering trading of certain unregulated derivatives called ‘Contracts for Difference’ (CFDs) or ‘Binary Options’,” Deepak said Jasani, Head of Retail Research at HDFC Securities. as said by IANS.
- “These give promises of high or exorbitant returns. Trading on such websites or platforms is risky as they are largely unregulated and may not be a SEBI registered entity, ”the IANS report states.
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