The three most common places that they claim to be operating from are the United Kingdom, Cyprus and Hong Kong SAR. Most of the binary options trading platforms we have encountered are usually unregulated entities based outside Singapore. Some also had unauthorised withdrawals made in their debit/credit cards after they had handed over their card details for payment. In these cases, the investors either lost all their monies or could not withdraw the balances in their accounts. Encouraged by initial profits and promises made by the platform staff about financial advice, more bonuses and attractive rewards, most of the investors found it difficult to stop at one small investment and will put in more money. Investors include finance professionals as well as retirees. Most of the investors are local Chinese males aged between 31 and 50. To date, CAD has received more than 30 reports from investors who have lost more than $1,000,000 to unregulated binary options trading platforms. This makes it extremely easy to lose your entire investment. Due to the short time frame, it is very likely that you cannot change your prediction or re-sell your option once you make your investment. It is difficult to make the correct prediction, especially when the time to expiry of the binary option is short. What can go wrong in binary options trading? All you need to do is open an account with the online trading platform and you can start investing. The starting investment amount can be low, the timeframe for knowing if you won or lost is short, and the potential payoff is usually high. This sounds like a highly attractive proposition. If your prediction is correct, you make USD0.70 on every USD1 you put in. You can make a prediction whether the price of USD/CAD will be trading higher or lower than the strike price of 1.255 in five minutes’ time i.e. Here, the strike price for USD/CAD at 15:00 hours for a 5-minute binary option is 1.255. The strike price is the reference point to determine if you have made or lost money. The risk of losing your entire investment is high, because correctly predicting short term price movements is difficult. That is why binary options are often also called “all or nothing” options. but will lose your entire investment if you are wrong. You receive a fixed payoff if your prediction is correct. Unlike other types of options, holding a binary option does not give you the right to buy or sell the underlying asset. The underlying products can range widely, and include shares, currencies and commodities. Usually that specified point in time is very near, ranging from a few minutes to a few months in the future. With a binary option, you are trying to predict whether the price of the underlying asset will be above or below a specified price at a specified point in time. In reality, binary options are speculative and risky, and many online platforms offering binary options trading are fraudulent. Binary options trading is attractive because it sounds simple and the option providers or platforms often promise high, quick and safe returns. There has been a sharp rise in complaints involving online trading in binary options.
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