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Markets World - Binary Options Live Cash Trading Part 3
trade free unlimited demo account here:
https://www.MarketsWorld.com/?a=1ZKHM04


A binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all.[1][2] While binary options theoretically play a role in asset pricing, they are prone to fraud and banned by regulators in many jurisdictions as a form of gambling.[3] Many binary option outlets have been exposed as scams. The U.S. FBI is investigating binary option scams throughout the world.[4][5] They estimate that the scammers steal $10 billion annually worldwide.[6]

The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and fixed return options (FROs) (on the American Stock Exchange).[7]

Many binary option "brokers" have been exposed as questionable operations. In those cases, there is no real brokerage; the customer is betting against the broker, who is acting as a bucket shop. Manipulation of price data to cause customers to lose is common. Withdrawals are regularly stalled or refused by such operations.[9] Though binary options sometimes trade on regulated exchanges, they are generally unregulated, trading on the internet, and prone to fraud.[7] The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have issued a joint warning to American investors regarding unregulated binary options,[10] and have forced a major operator, Banc de Binary, to cease operations in the US and pay back all customer losses. In Israel, where a high concentration of such firms can be found, binary options trading was prohibited for Israeli customers in March 2016, on the grounds that it is a form of gambling and not a legitimate investment technique. A ban on marketing of binary options to overseas customers is under consideration.[3]

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