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Resources for Victims Binary Options Fraud Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U. Investors should be aware of fraudulent promotion schemes involving binary options and binary options trading platforms.

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What is a Binary Option? Once the option is acquired, there is no further decision for the holder to make regarding the exercise of the binary option because binary options exercise automatically.

Unlike other types of options, a binary option does not give the holder the right to buy or sell the specified asset. When the binary option expires, the option holder receives either a pre-determined amount of cash or nothing at all.

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Investor Complaints Relating To Fraudulent Binary Options Trading Platforms The SEC has received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms.

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Beware of Overstated Investment Returns for Binary Options Additionally, 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. In this example, an investor could expect -- on average -- to lose money.

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