Avoiding Scams. A lot of people are wary of trading binary options because they are concerned about falling into a scam. The fact is, there are two main types of scams out there, one more prevalent than the first. When you think of scams, you probably are immediately reminded of a Ponzi scheme, where you place your money with a broker, but that broker does not provide the services that are promised. Luckily, this only happens very rarely. You can easily avoid this by only doing business with the most highly rated brokers . There are many sites out there that write up reviews of the different brokers, and there are many places where clients can share their reviews and thoughts. Take advantage of this and you will not fall for a Ponzi scheme. The second type of scam warrants a closer examination. This happens when a broker does not offer their clients competitive rates or products. However, this is tough to spot, because brokers will often change the rates from time to time , and even from asset to asset, the rate will typically differ. This is normal and to be expected. The problem is when a broker purposefully has a large discrepancy between what they offer and what other brokers offer. Spotting this can be tough.
Even the best broker reviews cannot spot this consistently because it requires daily observation. The best way to avoid this is to compare and contrast the different major brokers for a few days before you place your money anywhere. Being proactive and being observant are the best ways to protect yourself from having a broker take advantage of a captive audience. Remember, you trade to make money for your own use , not to help a broker increase their profits. It is possible for both broker and client to profit simultaneously, so make sure you take the steps to ensure this. It should be noted that brokers often do not do this on purpose. It’s impossible for a broker to monitor each and every other broker out there. And even if they could, for monetary reasons, not all brokers can compete with each other. One easy way to avoid the minor discrepancies that creep up from day to day is to have your money deposited with more than one broker . This makes a lot of sense from a profit standpoint, too. Because different brokers use different trading platforms, there will be minute differences in the rates, assets, and timeframes offered—plus different combinations of these things. By having your money spread out, you can always ensure that you are maximizing your profits and giving yourself the most favorable conditions. This will only help you to boost profit rates.
Trading binary options is a fun and exciting way to make money quickly. Whether you are a casual trader or a seasoned professional, your first priority will be the same: you want to make as much money as possible. The obvious conclusion from this is that you need to protect your money. Avoiding scams is an easy way to do this. You do need to take precautions with this, though, especially if you are going to trade with just one broker. Spread your money out and make sure that you are always giving yourself the most favorable conditions with which you can start making more money without having to worry about increasing your knowledge or your skills as a trader. This simple act of observation can increase your profit rates by a few percentage points, and this will truly add up to big earnings over the course of a few weeks. The Risk is very high when it comes to trading. Make sure you understand what is at stake before putting any money to work. You could lose your whole investment account. Binary Options Edge. 30 Minute Strategies.
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You should also have enough in your bankroll to warrant trading with the amounts you wish to trade. A good starting amount is about $10,000, but you can trade effectively with more or less. Many brokers will allow you to open an account with $200, but your risk of ruin will be very high with this level. Another question you should answer is your end goal. If you want to make a living off of trading, $200 is simply not enough. Next, look at what your level of knowledge is. There is no cutoff here, but a general thing to take into account is that the less experience and knowledge of the markets you have, the lower your correct trade rate will be. If you are just starting out, you will want to risk as little as possible in order to minimize the losses that you will face . There is a steep learning curve here, so you will want to be careful. One good method is to use a demo account for as long as possible. This will help you to learn the ropes a bit and cut down on the amount of newbie mistakes that you will inevitably make. Demo trading allows you to figure out how to use the platform and gives you an introduction to what real time trading looks like—this makes it a very valuable tool for both experienced and beginning traders alike. Minimizing risk can also be accomplished by diversifying your trades.
This is quite easy with binary options since most brokers give you many different asset classes and multiple timeframes to choose from. By varying what you trade and attempting to trade from a few different timeframe angles, you can achieve a sense of diversity that other marketplaces cannot easily supply you with. You will also want to practice smart money management techniques such as not risking a lot when you don’t have a clear edge over the market. This will become easier for you to see with several months of experience and keeping records. Your risk will never completely disappear, but with these methods, you can minimize it as much as possible. There’s no guarantee that you will be a profitable trader week in and week out, but practicing safe trading techniques can push the odds a little bit more into your favor. The Risk is very high when it comes to trading. Make sure you understand what is at stake before putting any money to work. You could lose your whole investment account. Binary options risk 30 minute scheme No income guarantees or promises of any type are being made. Your results will vary due to circumstances that are outside of our control. While utmost care has been taken to endure that all information provided has been tested up to the time of writing, all websites, products and services mentioned are provided, as is, without warranty of any kind. The author does not warrant, guarantee or make any representations about the use or results of the use of the websites, product, services or resources in this book. The reader acknowledges that the content provided here is for informational purposes and that risk of business failure is based on the strategies and plans devised and executed by the readers themselves.
The entire risk as to the results and performance of these websites, product and services are assumed by the reader. The reader thus agrees that the author and publisher are not responsible for the success or failure of readers’ business decisions relating to any information provided. Binary Options carry a high level of risk to your capital due to the volatility in the underlying market. These products may not be suitable for all investors. Therefore, you should ensure that you understand the risks and seek advice from an independent and suitably licensed financial advisor. This covers all information in this website, and no further information provided within this website or through correspondence with the author or webmaster on any platform is intended to supersede this disclaimer. CLICK HERE to find out How You Can Get a FULL VERSION of my Binary Option Mastery Course with my Zero Dollar Scheme. 30 Minutes Free Preview. The Daily Live Trade Post in this blog has been updated everyday since January 2015. Binary Option Course By Me. CLICK HERE to find out more about me and Why I Trade for a Living since 2009. © 2017 Binary Options method | Binary Option Signal. 15-30 Minute method for Beginners!
This method is very newbie friendly because it only. uses 2 simple but powerful indicators that are easy to understand! It is a good start for beginners who want a method to comprehend and evolve with. I prefer USDJPY and GBPUSD and EURJPY. Candlesticks should be above the SMA 50 for the trend to be considered an uptrend. Candlesticks should be below the SMA 50 for the trend to be considered a downtrend. Price is oversold when Stochastic is near or at 20. Price is overbought when Stochastic is near or at 80. Find Higher Lows. Look for locations where candlesticks come down and touch. the SMA 50 and confirm that Stochastic is oversold at the same time on the M15 time frame. If the candle does not break below the SMA after closing, take a 15-30 minute Call Option. Find Lower Highs.
Look for locations where candlesticks come up and touch the SMA 50. and confirm that Stochastic is overbought at the same time on the M15 time frame. If the candle does not break above the SMA after closing, take a 15-30 minute Put Option. Also let me know how it works for you! Don't forget to watch the video. No questions on my side, just congratulations on your first video for Binaryoptions. net Okane. I see too many beginners overwhelming themselves with loads of indicators. I dont think your video is working. It keeps saying an error occurred. But I should mention that all videos will always be posted on the. BinaryOptions. net Youtube channel so make sure you take a look.
there . There will be more videos and strategies coming up in the future so stay tuned! As I mentioned, I would mostly suggest USDJPY, GBPUSD and maybe other major. and volatile currency pairs. Maybe it'll work on other assets too but you have to test and find out . Today might have been difficult due to all the news coming out for USD. Have to take fundamentals. into consideration too. work. Other assets I don't know, if I were you I would test for a while, back test+ demo. I usually focus on one asset only because it helps me. learning and recognizing its patterns and habits.
Okane, could you do me a favour please. Scroll up the page and look at the chart I posted and pretend it's USDJPY instead of INTC. Would you have taken the trade, yes or no? I think no because the price was going down but I'm keen to hear your opinion. to use it on INTC to begin with. Can't just pretend it will behave like a currency pair with high volatility. So it will probably give you more losses on that asset. I just opened my INTC chart and set the method up and guess what. it looks no good at all. Price is most of the time nowhere near the SMA and it is way too jumpy. Sometimes price goes through the SMA but then retraces back and the. M15 candle closes above it then it could mean support is holding so. it is a good setup (just to simplify it, in reality there are more things to consider before selecting a supportresistance). Other times candle might close under the SMA but the. next candle still closes above the SMA. other things that one has to learn for himselfherself by getting experienced!
I suggest you learn drawing support and resistance lines as well. Currency pairs also have wave patterns, time patterns and their own characteristics. These are things that are more difficult to just mention in text. I suggest you also take a look in my trading journal in the journaldiary room. I draw lots of SR lines and you might learn something! kindest regards Lois Lane. the significant supportresistance areas! Weekly and Daily supportresistance lines. are very strong. Combining your analysis with a simple method will give you more. winning trades than simply following indicators . Sometimes there is more but you have to learn how to find them.
There are patterns that one might neglect due to inexperience. So it all comes down to training and experience. Hi, I know there is no such thing as a stupid question here, but where do do you find the sma 50. I see moving average . but where is the 50. are you talking about the median price HL2, whats the parameter and the shift. Even the simplest of strategies perplexes me. Help me. Just follow it step by step . Also, on your chart, you need to make some space, don't have to but I recommend. it. Close the unnecessary stuff (the windows to the left on your chart) and don't zoom in that much! Let me know if you have more questions. you can combine Moving Averages with price action analysis. in my diary in the journal room. Check it out because it will help. you finding good entries! Another question, based on this method, does the criteria often happen more than 3-7 times a day - as an example - ?
Thanks! Hey Okane, Thanks for the method, Can this setup be made on freestockcharts. com? i couldnt find smooth SMA, only Simple? Another question, based on this method, does the criteria often happen more than 3-7 times a day - as an example - ? Thanks! Binary options risk 30 minute scheme with Binary Options. My name's John Campbell (SaneFX, Rich Lazy Trader, etc.) and 5 Minute Trades is the first system I have ever released that teaches you to trade using your own common sense and skills - without relying on any indicators to know when to trade. As such, it offers a timeless skill that can be used to make money regardless of market conditions and for an indefinite time into the future.
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Binary Options Edge. Like This Unlike Wizdom 13 Mar 2016. Good Evening to you all. my greeting goes to eveyone one on these beautiful forum, been here for a long time but always as a ghost member watching how things works on this forum. but today, made a decision to open and show my own style of trading and making money from off the markets. so i know and have seen few threads from some popular members here like hubba , tradesmart, randy, max, holy fire, david and others i have forgotten and i appreicate thier trading methods as they are kinda similar to mine. Like This Unlike Wizdom 13 Mar 2016. Good Evening to you all. my greeting goes to eveyone one on these beautiful forum, been here for a long time but always as a ghost member watching how things works on this forum. but today, made a decision to open and show my own style of trading and making money from off the markets. so i know and have seen few threads from some popular members here like hubba , tradesmart, randy, max, holy fire, david and others i have forgotten and i appreicate thier trading methods as they are kinda similar to mine. Good Evening to you all. Like This Unlike singu 13 Mar 2016.
Can't wait. I've been looking to learn PA for a long time, but always postpone. maybe it's my time to learn it from you, and all the other guys here. Looking forward to examples. Like This Unlike Chrispap 13 Mar 2016. Good Evening to you all. my greeting goes to eveyone one on these beautiful forum, been here for a long time but always as a ghost member watching how things works on this forum. but today, made a decision to open and show my own style of trading and making money from off the markets. so i know and have seen few threads from some popular members here like hubba , tradesmart, randy, max, holy fire, david and others i have forgotten and i appreicate thier trading methods as they are kinda similar to mine. have been trading the market for close to 5yrs and been making consistent profit by Gods grace for the past 3yrs (hey, not here to brag), my reasons for saying these is to let us konw that am here to teach and learn, not some stratgey remodification, testing of a method or building of an indicator. If i have a method and its working, whats the need to change or remodify? my method has been same for d past 3yrs plus and working and i hope to keep it that way and show others how i do it. I trade pure price action with no single indicator on the chart, i find it enough to to look at the candles and know whats up if i could, not going to give you a kind of percentage here as this is not a particular method of trading as i consider this more like a freestyle while others learn and i learn from them as no amount of knowledge is enough. believe me the first 2 yrs of my trading career was like a real struggle, jumping from one indicator to another, fro m one method to other, tested almost all strategies in forextradingresources and lots more, but they wont just give us what we want because those indicators makes us to put faith in them without considering what the market itself is doing and when they fail us we get angry.
not until i decided to focus on price action only and took a lot of time to learn it.. you have to be determined to learn price action because many indicators would distract you each time u make d decision. learn to read the markets itself and almost any method would work out for you like Hubba do say.. i hate to talk too much as am always lazy to read long posts. lastly, only want to display to you guys my method of trading, its not a particular method or indicator, but am gonna explain each setup so we can be able to spot those setups too. the most important thing that judges my trades is how strong is the support and resistance in that area or confluence , trust me this is not gonna be an easy road for anyone who want to be able to read the charts and not depend on indicators but i call tell you that the time is worth it. mine took years, if we all humble ourselfs to learn together here, yours could take months but no one turns a billionaire over night with an indicator, even price action cant make you a millionaire overnight, but with patient and screen time at the right things, its worth it on the long run. So would be showing you guys and explaining each trade and once in a while, i would be posting live trade calls so anyone who happen to spot it we can take them together, . would show just 2-3 setups from last firday here. would post more on monday as market resumes, would post them as i spot them and show you the ones i take and why i took them, its just my own method. my tf: 30mins above. durations: candle close as i spot my setups on current candles. Looking forward mate! Like This Unlike randy1953 13 Mar 2016. Good Evening to you all. Very nice and thank you no need to reinvent the wheel as you are making it happen for us all..
most appreciated let the work begin. Like This Unlike Wizdom 13 Mar 2016. here are two trade setups i took last week. both setup are similar. the trend is my girl friend and i love to go wit her everytime. this is just the beginning. we would see more tomorrow as the market opens. we ask questions if we have some. till tomorrow guys. I love this forum because there are many matured members and live traders here. good night fellas.
1.jpg 60.37KB 399 downloads 2.jpg 61.35KB 204 downloads. Like This Unlike Wizdom 13 Mar 2016. Can't wait. I've been looking to learn PA for a long time, but always postpone. maybe it's my time to learn it from you, and all the other guys here. Looking forward to examples. Looking forward mate! Very nice and thank you no need to reinvent the wheel as you are making it happen for us all..most appreciated let the work begin. thanks guys, looking forward to learn from you guys too..goodnight. Like This Unlike Arnaud 13 Mar 2016.
Thanks for sharing Wizdom. I think you are right, trading with the trend should be easier.. I am always wondering why I can't simply follow that.. Looking forward to more setups! Like This Unlike Wizdom 14 Mar 2016. good morning guys. its Monday and there would always be opportunities for entries in the market, it all dies down to how we trade. I place upto 10 trades daily, i stop after i hit the 10th trade. i would be posting each trade taken and the results, both wins and losses and at the end of the day, i would post the whole results. here's my first trade for the day, its a clear breakout trade, i love to trade simple. i realize the market is easy to trade but we make it complex for ourselfs. a breakout trade. you may need to know that i wait for retracements before i take my trades to give me better chances of winning and we are gonna need patience and discipline to do that.
my N0 1 trade for today:: 1 Itm 0 otm. 3.jpg 103.64KB 206 downloads a. jpg 17.68KB 149 downloads. Like This Unlike victorckk 14 Mar 2016. Like This Unlike DonChally 14 Mar 2016. second trade of d day . similar to first, clear breakout. 4.jpg 60.17KB 154 downloads b. jpg 19.03KB 65 downloads. Like This Unlike Wizdom 14 Mar 2016. trade 3:: explained on picture. 5.jpg 50.71KB 120 downloads 5a. jpg 17.92KB 55 downloads. Like This Unlike Wizdom 14 Mar 2016.
trade 4. check pic for explanation. 6.jpg 51.58KB 98 downloads 6A. jpg 18.29KB 37 downloads. Like This Unlike Wizdom 14 Mar 2016. Trade 5 :: Gj check chart. total == 7 itm 1 otm. 2 more trades to go. then would post whole result.. 7.jpg 49.12KB 101 downloads 8.jpg 46.6KB 79 downloads 9.jpg 50.05KB 67 downloads 789 a. jpg 43.05KB 62 downloads. Like This Unlike Wizdom 14 Mar 2016. trade 9 : EA, price pattern repetition trade. itm. trade 10:: EJ price bouce in downtrend. 10 11.jpg 28.06KB 77 downloads 10.jpg 60.78KB 65 downloads 11.jpg 53.11KB 47 downloads. Like This Unlike Momentum 14 Mar 2016.
Great job Wizdom! Which are your favorite pairs to trade? Like This Unlike serg_trader 14 Mar 2016. Hey Wizdom, very nice classic PA trading off S&R zones. Can you explain your entries in a more precise way, when do you wait for retests (1st 2nd . 4th retest and why), how do you draw your SR lines, do you delete them after they are no longer respected. So any rules for your entry would be appreciated to have a clearer picture. Thanks. Like This Unlike Wizdom 14 Mar 2016. Like This Unlike Wizdom 14 Mar 2016. Great job Wizdom!
Which are your favorite pairs to trade? thats it, i dont have favorites, i trade up to 12 pairs, i go with anyone with the good setup. u hardly need to select pairs when trading PA. Like This Unlike deejayms 14 Mar 2016. we should probably add some new indis to filter out bad trades lolol good work wizdom - keep your trades comin man. the more retest the weaker an sr line becomes so maybe you can go into that as well (perhaps your only one otm could have been avoided for that reason?). also your not trading any set exp time? just taking reflex touch off sr line? great thread - looking forward to more input. Binary Options - a pure and simple way to trade or simply a SCAM? An unbiased guide to binary options - revealing scams and facts you need to now. What are Binary Options? Binary Options For Dummies: A Binary Option is an option whose payoff is either a fixed amount or zero.
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2 When buying a binary option the potential return it offers is certain and known before the purchase is made. Binary options can be bought on virtually any financial product and can be bought in both directions of trade either by buying a "Call" option or a "Put" option. This means that an investor can go long or short on any financial product simply by buying a binary option. Binary options are offered against a fixed expiry time which may be e. g. 60 seconds and up to 30 minutes, an hour ahead or to the close of the trading day. The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have recently issued an Investor Alert to warn investors about fraudulent promotion schemes involving binary options and binary options trading platforms. Non Exchange Traded Binary Options. Binary options contracts have long been available over-the-counter (OTC), i. e. sold directly by the issuer to the buyer. They were generally considered "exotic" instruments and there was no liquid market for trading these instruments between their issuance and expiration. They were often seen embedded in more complex option contracts. Since mid-2008 binary options websites called binary option trading platforms have been offering a simplified version of exchange-traded binary options. 2 Exchange Traded Binary Options.
In 2007 , the Options Clearing Corporation proposed a rule change to allow binary options, and the Securities and Exchange Commission approved listing cash-or-nothing binary options in 2008. In May 2008, the American Stock Exchange (Amex) launched exchange-traded European cash-or-nothing binary options, and the Chicago Board Options Exchange (CBOE) followed in June 2008. The standardization of binary options allows them to be exchange-traded with continuous quotations. 2 Binary Options On The Chicago Board Options Exchange. CBOE Binary Options are a pure and simple way to trade based on your opinion of where a market is headed over a certain period of time. They are contracts that, at expiration, pay out a pre-determined, fixed amount or nothing at all. The payout amount for CBOE Binary options is $100. Like traditional options, Binary Options are based on an underlying security, have various strike prices to choose from as well as various expirations. CBOE lists both call and put Binary Options. If, at expiration, the price of the underlying security closes at or above the selected strike price, the buyer of a call Binary Option receives $100 per contract. If the underlying security closes at a price that is below the strike price on the expiration date, the buyer receives nothing. In the case of put Binary Options, the put buyer receives $100 per contract if the underlying security closes below the strike price at expiration, and nothing if the underlying security closes at or above the strike price at expiration. Is Binary Options Trading Legal In The US? In the United States, it is legal to trade binary options, as long as they are exchange based , as in the case of the North American Derivatives Exchange (NADEX), which provides a trading environment in which trades are executed via an exchange rather than clients &lsquobetting&rsquo against the binary options firm itself. CAN OFFSHORE "BROKERS" TRADE WITH US RESIDENTS?
According to NADEX: In the case of off-shore platforms offering binary options to retail customers in the United States, the answer to this question is a resounding "No". As the Director of Enforcement for the CFTC stated in connection with a recently filed lawsuit: "It is against the law to solicit U. S. persons to buy and sell commodity options, even if they are called &lsquoprediction&rsquo contracts, unless they are listed for trading and traded on a CFTC-registered exchange or unless legally exempt." Binary Options Brokers. If your search the web looking for a binary broker you will see that most binary options brokers (platforms) are located offshore . Many of them do offer accounts to US clients, even though this seems to be illegal and there were already civil complaints filed. Usually these "brokers" are simply Internet based trading platforms offering binary options. Most sites that recommend brokers get paid (often $200 or more) for each each visitor that opens an account with one of their "recommended" brokers. They are completely biased . There's thousands of sites that will show you the best best binary options brokers . Below is an example (please note that since I am unbiased you will not find any affiliate links here) USA Binary Options Brokers.
Looking for binary options brokers that serve US customers? You may already have discovered that many brokers refuse to accept customers from the USA. This may lead you to believe that binary options trading is illegal in the US, but this is not correct. Best Binary Options Brokers Accepting USA Customers. HOW DO BINARY OPTIONS WORK? A Binary Option asks a simple yesno question. The price at which you buysell is not the actual price of gold, but rather a value between zero and 100. The bidoffer price fluctuates throughout the day, but always settles at either 100 (if the answer is yes) or zero (if the answer is no). Your profitloss is calculated using the difference between the settlement price (zero or 100) and your opening price (the price you bought or sold at). Binary Options Reviews. Binary Options Software Reviews: Binary Options Broker Reviews: BINARY OPTIONS HOW TO LOSE A FORTUNE. JUST MAKE A DEPOSIT! How to make money online with 60 second binary options. 60 second binary profit system.
Binary options are a simple and rewarding financial trading product. Binary options deliver a fixed return on every trade which is made, depending on whether the trade was "In The Money", "Out Of The Money" or a "Tie". If the EURUSD has an even 5050 popularity DO NOT TRADE there must be a bias one way, even if it's 49% -- 51%. That 2% gap means a lot in the world of binary options and currency trading. Trading binary options with this system is fast paced. In order to catch the winning trade in the 5 point decimal base with your 5 trades you have to be quick. This is especially important in Step 4 below. If you're using a laptop, you might want to use a mouse rather than the trackpad for speed, or if you have a slow mouse INVEST IN A BETTER ONE! This is of vital importance, if you go and make a cup of tea between trades using this binary options system, then you may miss the necessary entry point to win and your odds will drop from up to 100% to 50% so BE QUICK! Do not change the direction you are trading on midway between Step 2 and Step 5. If your starting trade at $5 is a PUT then continue through to Step 5 on PUT do not switch to CALL as your odds will drop from up to 100% to 50%. Also, if a trade comes out as a TIE, you should put on the same trade again as soon as possible. Profit in 60 seconds again.
After each winning trade, ALWAYS check to see if the Popularity has changed from PUT to CALL, as shown in Step 1. Binary Option Signals. Important things to look for before choosing a Binary Option Signals Service : 1) Historically Probable Trades that have a profitable forward trading history and a reason behind the trades versus just simple subjective trades. 2) A Trade Log showing every binary option signal trade and not just highlights of winning trades. 3) Vital Stats: Profitable Days and Draw Days, Losing Days , Consecutive Profitable Days, Consecutive Losing Days, Maximum Drawdown. 5) Easy Access To Signals (Text Message, Desktop Visual and Sound Notifications, Twitter, Trading Chat Room) 6) Longevity (Avoid startups and fly by nights) 7) A Trading Chat Room to help you with questions and to help provide even more trades in the trading chat room. 8) Webinars for Continuing Binary Options Education. 9) Education on everything from basics to advanced Trading. 10) Binary Option Trading Tools like a spread scanner, basic indicators etc. Highest Signals Win Rate Ever: updownsignals. com (they say they offer tools and support) - verified track records. would doubt it. Binary Options Scams and Fraud. Here's What The Authorities Say about Binary Options: Investor Alert: Binary Options and Fraud issued on: 06062013.
Please note that the text below is not the complete joined alert - you can read the complete alert here. The SEC&rsquos Office of Investor Education and Advocacy and the Commodity Futures Trading Commission&rsquos Office of Consumer Outreach (CFTC) are issuing this Investor Alert to warn investors about fraudulent promotion schemes involving binary options and binary options trading platforms. Binary Options Trading Platforms. . Some binary options are listed on registered exchanges or traded on a designated contract market that are subject to oversight by United States regulators such as the SEC or CFTC, respectively, but this is only a portion of the binary options market. Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U. S. regulatory requirements and may be engaging in illegal activity. The number of Internet-based trading platforms that offer the opportunity to purchase and trade binary options has surged in recent years. The increase in the number of these platforms has resulted in an increase in the number of complaints about fraudulent promotion schemes involving binary options trading platforms. Typically, a binary options Internet-based trading platform will ask a customer to deposit a sum of money to buy a binary option call or put contract. For example, a customer may be asked to pay $50 for a binary option contract that promises a 50% return if the stock price of XYZ company is above $5 per share when the option expires. If the outcome of the yesno proposition (in this case, that the share price of XYZ company will be above $5 per share at the specified time) is satisfied and the customer is entitled to receive the promised return, the binary option is said to expire &ldquo in the money. &rdquo If, however, the outcome of the yesno proposition is not satisfied, the binary option is said to expire &ldquo out of the money, &rdquo and the customer may lose the entire deposited sum. There are variations of binary option contracts in which a binary option that expires out of the money may entitle the customer to receive a refund of some small portion of the deposit-for example, 5%-but that is not typically the case. In fact, some binary options Internet based trading platforms may overstate the average return on investment by advertising a higher average return on investment than a customer should expect, given the payout structure. For instance, in the example above, assuming a 5050 chance of winning, the payout structure has been designed in such a way that the expected return on investment is actually negative , resulting in a net loss to the customer.
This is because the consequence if the option expires out of the money ( approximately a 100% loss ) significantly outweighs the payout if the option expires in the money ( approximately a 50% gain ). In other words, in the example above, an investor could expect, on average, to lose money. Complaints Relating to Fraudulent Binary Options Trading Platforms. The SEC and CFTC have received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms . The complaints fall into at least three categories: refusal to credit customer accounts or reimburse funds to customers, identity theft, and manipulation of software to generate losing trades. The first category of alleged fraud involves the refusal of certain Internet-based binary options trading platforms to credit customer accounts or reimburse funds after accepting customer money. These complaints typically involve customers who have deposited money into their binary options trading account and who are then encouraged by &ldquobrokers&rdquo over the telephone to deposit additional funds into the customer account. When customers later attempt to withdraw their original deposit or the return they have been promised, the trading platforms allegedly cancel customers&rsquo withdrawal requests, refuse to credit their accounts, or ignore their telephone calls and emails. The second category of alleged fraud involves identity theft. For example, some complaints allege that certain Internet-based binary options trading platforms may be collecting customer information such as credit card and driver&rsquos license data for unspecified uses.
If a binary options Internet-based trading platform requests photocopies of your credit card, driver&rsquos license, or other personal data, do not provide the information. The third category of alleged fraud involves the manipulation of the binary options trading software to generate losing trades. These complaints allege that the Internet-based binary options trading platforms manipulate the trading software to distort binary options prices and payouts. For example, when a customer&rsquos trade is &ldquowinning,&rdquo the countdown to expiration is extended arbitrarily until the trade becomes a loss. Certain Registration and Regulatory Requirements of the SEC. For example, some binary options may be securities . Under the federal securities laws, a company may not lawfully offer or sell securities unless the offer and sale have been registered with the SEC or an exemption from such registration applies. For example, if the terms of a binary option contract provide for a specified return based on the price of a company&rsquos securities, the binary option contract is a security and may not be offered or sold without registration, unless an exemption from registration is available. If there is no registration or exemption, then the offer or sale of the binary option to you would be illegal. If any of the products offered by binary options trading platforms are security-based swaps, additional requirements will apply. In addition, some binary options trading platforms may be operating as unregistered broker-dealers. A person who engages in the business of effecting securities transactions for the accounts of others in the U. S. generally must register with the SEC as a broker-dealer.
If a binary options trading platform is offering to buy or sell securities, effecting transactions in securities, andor receiving transaction-based compensation (such as commissions), it likely should be registered with the SEC. To determine whether a particular trading platform is registered with the SEC as a broker-dealer , visit the FINRA BrokerCheck website. Some binary options trading platforms may also be operating as unregistered securities exchanges. This would be the case if they matched orders in securities of multiple buyers and sellers using established non-discretionary methods. However, there are cases where a registered broker-dealer with a trading system or platform may legitimately have no obligation to register as an exchange. Certain Registration and Regulatory Requirements of the CFTC. It is illegal for entities to solicit, accept offers, offer to or enter into commodity options transactions (for example, foreign currencies, metals such as gold and silver, and agricultural products such as wheat or corn) with U. S. citizens , unless those options transactions are conducted on a designated contract market, an exempt board of trade, or a bona fide foreign board of trade, or are conducted with U. S. customers who have a net worth that exceeds $5 million. To see the most recent list of exchanges that are designated as contract markets, check the CFTC website. There currently are only three designated contract markets offering binary options in the U. S.: Cantor Exchange LP Chicago Mercantile Exchange, Inc. and the North American Derivatives Exchange, Inc.
All other entities offering binary options that are commodity options transactions are doing so illegally. Further, entities that solicit or accept orders for commodity options transactions and accept, among other things, money to margin, guarantee, or secure the commodity options transactions must register as a Futures Commission Merchant. Entities that act as the counterparty (that is, they take the other side of the transaction from the customer as opposed to matching orders) for foreign currency options transactions for customers with a net worth of less than $5 million must register as a Retail Foreign Exchange Dealer. Washington, DC - The U. S. Commodity Futures Trading Commission (CFTC) filed on June 5, 2013 a civil complaint in federal district court in Nevada charging Banc de Binary, Ltd. (Banc de Binary), a foreign company that held itself out as being headquartered on Wall Street, with violating the CFTC's ban on off-exchange options trading by offering commodity option contracts to U. S. customers for trading, as well as soliciting, accepting, and confirming the execution of orders from U. S. customers. The CFTC's complaint also charges Banc de Binary with operating as an unregistered Futures Commission Merchant (FCM). According to the CFTC's complaint, Banc de Binary operates an online trading website through which customers can buy or sell binary (&ldquocall&rdquo or &ldquoput&rdquo) options, predicting whether the price of a certain commodity will increase or decrease in a given time period. Specifically, from May 2011 through March 2013, Banc de Binary operated an online trading website which allowed U. S. customers to trade options products prohibited by the CFTC's ban on off-exchange options trading. Through its website, Banc de Binary allegedly unlawfully solicited and permitted U. S. customers to buy and sell options betting on the prices of wheat, oil, platinum, sugar, coffee, corn, foreign currency pairs, and stock indices. The CFTC's complaint also charges Banc de Binary with operating as an unregistered FCM from July 2011 through March 2013. Finally, the complaint alleges the company did not limit its options offerings to eligible contract participants, allowing U. S. customers to trade without requiring any information about their trading history or net worth. David Meister, the Director of the CFTC's Division of Enforcement, stated: &ldquoIf a company wants to offer U. S. persons the opportunity to buy and sell predictions on the direction of commodity prices, the company must play by the rules or suffer the consequences. The applicable rules are on the books for good reason - to protect market participants and promote market integrity - and we will serve the public by enforcing them.&rdquo The CFTC seeks civil monetary penalties, an injunction preventing Banc de Binary from engaging in certain commodity options activity with U. S. customers, and other remedial ancillary relief, including restitution, disgorgement, and rescission.
The CFTC acknowledges the Securities and Exchange Commission, the United Kingdom Financial Conduct Authority, and the Cyprus Securities and Exchange Commission for their assistance in the investigation of Banc de Binary. U. S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. Don't trade with money you can't afford to lose. This training website is neither a solicitation nor an offer to BuySell options, futures or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Please use common sense. This site and all contents are for educational and research purposes only. Please get the advice of a competent financial advisor before investing your money in any financial instrument. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY.
SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
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