Is binary options trading legal in India?

A binary option works like a bet wherein a trader has to put his bets on the price movement of the underlying asset. As the name suggests, there can only be two outcomes in the trade- gain or loss. In binary option, a trader makes a profit if an option expires 'In The Money (ITM)' i.e. price of an underlying asset closes above strike price and incurs losses if the option expires 'Out of the money (OTM)' i.e. price of the underlying closes below the strike price. As per RBI guidelines, binary trading is not legal in India. However, Indian traders who wish to trade in binary options can do so with an offshore options broker.