Binary options trading are the new emerging way of trading and investment. Here the investor plays around with the underlying assets performance during a set time frame. One can either understand or appreciate the beauty of binary trading when one knows how investment takes place in other forms of trading markets.
Usually, in other forms of trading, an investor first purchases an asset and then he keeps a close eye on its price variation. If any day he feels that the value of his acquired asset has gone way to high, he immediately sells it, thus making high profits. Similarly, if he sells the asset when its market value is down then he ends up making losses. Thus, under such kinds of trading practices there is a lot of mental stress regarding the price fluctuations and buying & selling of the assets.
On the contrary Binary options are much simpler and refined way of trading. Now, BO trading culture is restricted to just two kinds of acts, it can either be a call or a put. Don’t worry all that is explained in the paras to follow.
Call option in BO stands making a prediction that the price of the asset will rise in future. Where else Put options stands for making just the opposite prediction i.e. the asset price will fall in the near future. Thus, under BO the investor is not required to purchase the asset, he is just required to choose an asset and then predict on its future movement. Every correct guess will earn him a fortune, while for every wrong prediction he will be losing his entire invested amount.
It’s here where the problem starts, in order to protect oneself from taking any wrong decision, investors usually take help of a broker, how further guides him with the prediction. These brokers usually operates through a full fledge dedicated website with good software review and are present in bulk over the internet. Making a right decision and selecting a genuine broker is very important, as with a wrong/fraudulent one by your side you’ll end up losing all your money.
Below mentioned points will help you understand how the BO scam works –
- Firstly, a not so genuine guy, calling hims
- elf BO broker opens a legitimate looking fraudulent company.
- Then he’ll create a binary options trading software that would promise 100% guarantee of profit that too with 100% accuracy.
- With the help of fake testimonies, he will then advertise his company, looking for people who will fall in his trap.
- When someone sign-up on his website, it immediately asks for $250 of deposit.
- This will be followed by a fake phone call a ‘senior broker’, who then asks to deposit more money, promising to invest it wisely and returning you the amount with big profits.
So, act wisely and never ever sign up for a broker who doesn’t hold a license from regulators like ASIC, CFTC, CySEC or for that matter any other government body.
For more info: - Binary Options Brokers Scams