Binary options trading may appear to be simple. But, even for pros, picking the short-term swings of an underlying asset is exceedingly challenging. They’re high-risk and high-stakes. When you trade binary options, you’re betting on how an asset’s price will move.
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Binary Options is an investment trading platform that allows you to trade markets with a restricted risk-reward potential that operates on a yes or no system. The yes/no concept usually refers to whether the price of an asset that encompasses the binary option will increase above or fall below a predetermined threshold.
After purchasing it, the option holder does not have to select whether or not to exercise a binary option because binary options are automatically exercised. Unlike other options, a binary option does not provide the holder the right to buy or sell the underlying asset. The option holder would either gain a predetermined amount of money or none at all when the binary option expires.
Binary options are sometimes known as “all-or-nothing options” or “fixed-return options” because of their all-or-nothing payout structure.
What is a Binary Options Scam?
You get a phone call or come across a social media advertisement directing you to a well-designed, legitimate website. Scammers will lure you by talking highly of this trading site. They tell you that all you have to do is put your money in a yes/no question, and they trick you into saying that you will make a lot of money because the market always goes up during this period. But you have to understand that everything is customizable and can be changed as you see fit. It is simply the software that displays such profits. Some traders will try to win you over by offering you a free membership bonus. After giving you a taste of success, they ask you for information and promise you big profits to get money from you.
After you have gained success, the trader will ignore your phone calls and emails if you want to withdraw money from or delete your account or if scammers suspect you’re catching on. They may access your credit or personal information without your knowledge to obtain access to even more funds. They vanish after stealing as much of your funds as they can. This is referred to as the Binary Options scam.
Just as there are cops on the lookout for criminals, there are fund recovery companies on the lookout for scammers. These companies specialize in dealing with binary options scams. These firms are made up of a group of lawyers, financial experts, law consultants, and fund recovery specialists who collaborate to design a strategy for catching scammers.
Protect yourself from Binary Options Scams
It is vital to protect ourselves from the Binary Options Scam or even any other scam for that matter.
- Be wary of internet and social media advertisements that promise big profits from binary options trading.
- Always confirm that the broker is CFTC-registered and double-check their profile on the CFTC website. If you’ve been directed to a trading company, make certain that it’s also registered. While registration does not guarantee that the entity has passed background checks and is in compliance with trading regulations, it does imply that it has.
- Look at the CFTC’s RED List, which contains the names of unlicensed foreign businesses that the CFTC chooses to believe are attracting and accepting retail payments from US residents for binary options, among other things.
- Finally, don’t invest in something you don’t fully understand. If you can’t explain the investment fund in a few words that anyone can comprehend, you should reconsider your decision.
Things to do when you get scammed
The first and most important steps you must take if you become a victim of a Binary Options Scam are as follows:
- Immediately disable your credit and debit cards.
- If you have provided your banking information to the scammers, contact your bank and inform them of the situation.
- If you gave any of your personal information, such as your passport, licence, or utility bills, notify the appropriate people.
- Last but not least, and perhaps most importantly, inform your close ones about this. Hiding the fact that you have been a victim of a scam will only increase your anxiety.
Be cautious of the Binary Options Reload Scheme.
Scammers frequently target investors a second time in binary options scams by claiming to be affiliated with a government agency. They offer to help the investor recover money lost in the binary options scam and in exchange for a fee. This occurs when the scammer either decides to scam you again or sells it to other scammers. This is referred to as a “reload.” It is now up to you to avoid falling victim to such scams in the future.