IG Securities, the Japanese subsidiary of global trading leader IG Group, has released the trading results of its binary options business for August 2024. The report highlights the performance across various categories of binary options, including FX, stock price indices, and commodities, providing a clear picture of client activity and trading outcomes.

FX Binary Options.

In the FX binary options category, IG Securities reported that the total amount received by clients as a percentage of the total amount paid by clients stood at 93.4% for August. This indicates that clients received 93.4% of what they initially invested. Additionally, 76.9% of the accounts that participated in FX binary options trading ended the month with losses, reflecting a high percentage of accounts that did not achieve positive outcomes in this trading category.

Stock Price Index Binary Options.

The stock price index binary options category performed slightly better in terms of client returns. The total amount received by clients reached 99.3% of the total amount paid, showing a more balanced outcome for participants in this segment. However, 56.3% of the accounts that traded stock price index binary options experienced losses, a notably lower percentage than in the FX category, suggesting a relatively better performance for traders in this category.

Commodity Binary Options.

In the commodity binary options category, clients received 90.9% of the total amount they had paid. The report also revealed that 57.1% of the accounts trading in this category posted losses for the month, indicating that more than half of traders faced challenges in achieving profits in the volatile commodities market.

Key Trading Metrics:

- Total Amount Paid by Clients: This refers to the sum of option fees paid when holding bid positions, fees for reverse trades to liquidate sold positions, and payouts for closed positions.

- Total Amount Received by Clients: This is the amount clients received in option fees for holding sold positions, liquidating bought positions, and payouts from successful trades.

- Number of Accounts with Losses: This metric shows the percentage of accounts that traded binary options and ended the month with a net loss. Corporate accounts were included in these statistics.

The data from IG Securities highlights the complexity and volatility of binary options trading, with a significant portion of clients ending the month with losses. While stock price index binary options saw a relatively balanced outcome, the high loss percentages across all categories underscore the inherent risks in binary options trading.