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He has provided education to individual traders and investors for over 20 years. Article Reviewed on December 29, Gordon Scott Updated December 29, Binary options are an all-or-nothing option type where you risk a certain amount of capital, and you lose it or make a fixed return based on whether the price of the underlying asset is above or below depending on which you pick a specific price at a specific time. If you are right, you receive the prescribed payout.
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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.
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