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Simply a bet on a bunch of moving numbers determining if you win or lose, again, no difference from an online casino. Regulation means that they are registered with the Securities and Exchange Commssion (SEC) if they are in the USA and is a part of an investor protection program such as the Investor Compensation Scheme or FINRA in the USA.

These ensures that your money won't be lost through bankruptcy or fraud by the broker and that the broker is actually performing a real securities market service in the real stock market and not just an electronic game. Yes, in a real options trading account, you are actually protected by the regulation and the government such that if the broker closes down, you actually get back some, if not all, of your money.

Which brings us to the next big difference between binary options trading and real options trading.