Binary options trading fraud

A binary options trading greatly differs from usual option kinds as the payout is influenced by the
effect of a yes/no proposition only. In turn, they are influenced by the underlining asset price.

Eg: say,if price of 1 bond of ABC enterprise exceed $6.89 at 1:35 pm on some specified date, or if
silver’s price will exceed $35 per ounce at 12:15 a.m. on some specified date. The moment you
acquire a binary option, you cannot change your mind as
binary options trading runs automatically. As distinct from usual options, during binary option
trading an option holder cannot aquire or market the underlying asset. After your option expires, you
will be able to get whether some stated money supply or nothing. Because of this payout
scheme, binary options have two more names “all-or-nothing options” as well as “fixed-return options.”

Platforms for Binary Options Trading

Some binary options brokers are
under control of the US regulators. Normally they are those listed on registered exchanges but
they make the tip of the
binary options market. Its biggest part works via online trading platforms which do’nt always
comply with the US regulation.
The quantity of those binary options trading platforms is constantly growing.
The more is the number of those platforms the more complaints about fraud connected with
binary options trading via the Internet
we can find. Internet traders are usually asked to deposit some money for some binary option contract buying. Say, a trader
is told to deposit $45 for some binary option contract promising a 51% interest whether
ABC company’s share price exceeds
$7 at the end time of the option. So, when the yes/no proposition outcome (so, the ABC
enterprise’s bond price will exceed $7 at some
stated moment) is met and the trader can get the interest promised, the binary option is
considered to end “in-the-money.” Otherwise,
it has expired “out-of-the-money”. In the “out-of-the-money” case the trader can lose everything s/he has deposited. Sometimes binary
option contracts offer refunding in the
case of out-of the-money expiration. But they usually compensate just a very tiny
part of the sum, say, 5%. You can face binary options trading
platforms which tend to overvalue the average investment interest using some special
payout structure. Eg: let’s use the previous example;
it assumes equal chances to lose or to win, and the payout structure is made in such a
manner that the interest on investment is in fact
negative, leading to a trader’s net loss. So, an investor is more likely to lose
his / her money, on average.