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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. What is a Binary Option?

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Along the way, even before you get started, it is wise to address security issues so no unwanted intrusions or loss of data interrupt a great trading session. The bottom line is that Internet security is a serious business, and even more serious when considering your binary options account. The number one thing to remember is that the security of your system, your connections and your trading is your responsibility. While it is in their best interest, and usually legally appropriate, for a broker to have top notch digital security it is not their responsibility to protect you from anything other than frauds they themselves may commit.

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Regulation and fraud[ edit ] Further information: Securities fraud Many binary option "brokers" have been exposed as fraudulent operations. Manipulation of price data to cause customers to lose is common. Withdrawals are regularly stalled or refused by such operations; if a client has good reason to expect a payment, the operator will simply stop taking their phone calls.

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While some binary options are listed on registered exchanges or traded on a designated contract market that are subject to oversight by U. Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U. For a comprehensive overview of binary options, including information about investing in binary options that are subject to U.

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Binary options depend on the outcome of a "yes or no" proposition, hence the name "binary. At the time of expiry, the price of the underlying asset must be on the correct side of the strike price based on the trade taken for the trader to make a profit.

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