What is Binary Options Trading?

Binary options trading involves predicting whether the price of an asset will rise or fall within a specific timeframe. Unlike traditional stock trading, investors in binary options do not buy or sell the asset but rather place a bet on the asset’s future price movement. If the prediction is correct, the investor earns a predetermined profit. If incorrect, the investor loses the invested amount.

For example, an investor might predict that the price of oil, currently at 50€, will rise by 9:00 am. If the price increases, even by a single cent, the investor profits. If it drops, the investor loses the money wagered. This win-or-lose scenario is the basis of the term “binary.”

To put it simply, fraudulent groups and individuals can use binary options trading to exploit investors. The target gets sucked into a scheme purposefully designed to extract their funds without any chance of gains whatsoever. Sadly, these scams are widespread and frequent in this finance area, and even seasoned traders end up being a victim. 

There are a plethora of unregistered and illegitimate platforms which will promise money-making tips and get-rich-quick opportunities for a monthly fee. Of course, their advice is inaccurate and seldom profitable. In the end, their beneficiaries lose their money and they can’t get in contact with any of the personnel. 

These fraudsters have well-developed systems and they will use any means necessary in order to rob an unsuspicious investor. Con artists will present themselves as verified experts with unique insight into the market fluctuations. It is not uncommon that scammers will try to sell state-of-the-art software which can make amazing bets for their users. Quite often, these programs end up being malware. 

Commonly, scammers use official sites, message boards, and social media to promote themselves to lure their victims. Unsolicited calls and emails turn into aggressive pitches presenting a now-or-never investment opportunity. With a constant stream of information, it’s difficult to discern the real trading professional from the scam artist.