The SEC's Office of Investor Education and Advocacy and the Commodity Futures Trading Commission's Office of Consumer Outreach (CFTC) are issuing this Investor Alert to warn investors about fraudulent promotion schemes involving binary options and binary options trading platforms. These schemes allegedly involve, among other things, the refusal to credit customer accounts or reimburse funds to customers, identity theft, and manipulation of software to generate losing trades. Binary Options
In this quick video you will learn about the underlying Gold Futures contract specs, Nadex Gold Binary Contract Specs, and Nadex Gold Spread Contract Specs. In this quick video you will learn about the underlying EUR/USD Spot Forex (FX) contract specs, Nadex EUR/USD Binary Contract Specs, and Nadex EUR/USD Spread Contract Specs. Third, because they trade more like European options, analysis using the Greeks is more straightforward. While this will not apply to any but the most sophisticated investors, it is worth noting. The Greeks are a series of mathematical measurements that describe the behavior of an option. They make certain assumptions that are more manageable with a binary option because of the simplified possibilities of results.
As mentioned before, binary options are typically “all-or-nothing” trading instruments in that the payout or loss is only given at contract expiration, but there are a few brokers that allow you to close a binary option trade ahead of expiration. This usually depends on the type of option, and usually it's only available within a certain timeframe (e.g., available 5 minutes after an option trade opens, up until 5 minutes before an option expiration). The trade-off for this flexible feature is that brokers who do allow early trade closure tend to have lower payout rates.
This baby works great even in these unpredictable crazy markets! There is never more than 1 trade open at a time even though you see some re-entries on closing expiry candles but they don't overlap because the expiry takes place at the very opening of that candle and the trade would be placed basics of options trading so many seconds later because of the time lapse from the time it is confirmed to the time you get it placed. This is called making big bucks with minimum risk! Nine good trades generated in about 6 hours but the first 6 were generated in 3 and 1/2 hours. I thought you would never ask.
The main type is either a call (bullish) or a put (bearish) option. You buy a call if you think the asset is going up and you buy a put if your view is that it is going south. Recently brokers have added other option types so that you can refine your strategy. For example a range option is a bet that the asset will stay inside a specific range. A knock out option is a bet that the asset will reach a price target. All these tools and the ability to pick any of them on any of the traded assets let you create the strategy exactly tailored to your precise views.
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