Binary option is an exotic selection in finance where the settlement is someform of “fixed monetary amount” or “nothing at all”. The two major types of binary selections are the “cash-or-nothing” option and the “asset-or-nothing” option. The first will pays a fixed amount of cash when the option expires “in-the-money” while the last one pays the value of the underlying security.

Prone to fraud

While these options may be also used in theoreticpricing of asset, they are quite prone to fraud and due to this; they are banned by regulators in many dominions calling them a form of gambling. Many binary options outlets have been uncovered as fraudulent. The United States FBI is investigating binary options scams around the world The Israeli police have linked this industry to criminal syndicated. The European Union is issuingrules that will stop binary options trading. ASIC considers binary options as an “unpredictable” and “high risk” option of investment.

Scams

The FBI believes that scammers stole $10 billion annually around the world. They use the name of respectable as well as famous people like “Richard Branson” to inspire other individuals to buy these fake “investments” is often used and is increasing. Articles published in the Times of Israel newspaper clarifies in detail this fraud, using the participations of insiders employed by brokers selling fake binary options, and who were told to “leave your conscience at the door”. Following an investigation by the Times of Israel, the Israel’s cabinet banned on sale of “binary options” in June 2017 and a law banning the products was given approved by the “Knesset” in October 2017.

Still interested

If you are still interested and can find a place to trade these options you need to decision what assets you are going to trade. Individual stocks and equities are tradable through the majority of most binary brokers. Not each stock will be available, but generally you can choose from 25 to 100 of the most popular, such as Apple or Google. These are growing all the time as demand dictates. These lists of assets lare always clearly listed on every trading platform and the majority of brokers make their full asset list available on their website.