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I'm asking this question because, I know that FOREX Trading in India is not legal, so is it legal if we trade options on companies like Apple or Facebook using IQ Options or Expert Options or basically any foreign broker?

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    Forex is trading currencies of different countries. Options are a derivative on a stock. They are not related as you imply. What did your broker tell you? – JTP - Apologise to Monica Jul 1 '17 at 23:23
  • Well, I new to this field, I assumed certain things. what is the difference between binary options and just options? are they similar? – Jeff Jul 2 '17 at 11:03
  • Welcome to Money.SE. Please take the tour to see how the site works and what questions are on topic here. You are asking a new question. Please search the site first. What are Binary Options? has been asked and answered. – JTP - Apologise to Monica Jul 2 '17 at 12:21
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No any activity that involves margin call is not permitted under Liberalized Remittance Scheme or FMEA. As Option trading involves margin calls; it is not allowed.

  1. Remittances under the Scheme can be consolidated in respect of family members subject to individual family members complying with its terms and conditions. However, clubbing is not permitted by other family members for capital account transactions such as opening a bank account/investment/purchase of property, if they are not the co-owners/co-partners of the overseas bank account/ investment/property. Further, a resident cannot gift to another resident, in foreign currency, for the credit of the latter’s foreign currency account held abroad under LRS.
  2. All other transactions which are otherwise not permissible under FEMA and those in the nature of remittance for margins or margin calls to overseas exchanges/ overseas counterparty are not allowed under the Scheme.
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    Aside question: How come some of the numbers listed under section 2 of the LRS section have (to me) bizarre commas? e.g. 1,00,000 and 2,00,000 ? It appears they should be 100,000 and 200,000? – Peter K. Jul 3 '17 at 11:46
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    @PeterK. India follows a different convention. 100,000 is 1,00,000 read as 1 lakh. and then 10 lakh. then 1 crore [1,00,00,000]. Essentially after thousand, we use a 2 digit separator. Read en.wikipedia.org/wiki/Indian_numbering_system – Dheer Jul 3 '17 at 11:57
  • but ICICI direct has margin trading, It has options (call / put) trading, why is this legal and not IQ option? I'm confused – Jeff Jul 5 '17 at 15:52
  • @Jeff can you share the link. – Dheer Jul 5 '17 at 16:11
  • youtube.com/watch?v=bAOSYcPfvIo&t=559s => this dude talks about option trading, he says its just like margin. I'm totally confused – Jeff Jul 5 '17 at 16:40

protected by Community Aug 1 '17 at 17:08

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