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Binary options promise high returns, quickly. But the reality is you're more likely to lose your entire investment. This video explains how binary options work and the risks involved with trading in binary options. There are unlimited variations of these two types of binaries, including combinations with plain vanilla options.
Before investing, it is important you understand how the type of binary option you are considering works and how it is priced. You'll also need to be comfortable with the fact that you risk losing all of the money you invest.
Most binary option providers operate through online platforms and mobile apps. Not all platforms and apps that offer binary options are licensed, which is against the law. Many people have lost a lot of money through unlicensed binary options providers.
ASIC has been working closely with both Google and Apple to remove unlicensed binary options apps from their app stores. See ASIC's media release for more information. Apple has now banned binary options trading apps from its app store. ASIC also welcomes Google's move to ban advertising of binary options. This will help make sure you are less likely to be exposed to risky products and unlicensed operators.
Richard visited the company's website and saw that they offered binary options on the shares of some large, well-known companies. Because Richard had a share portfolio and actively followed the share market, he thought he'd give it a go.
He decided binary options were too risky for him and that he'd be better off focusing on his share portfolio. You need to understand the implied probability the true odds of an event occurring from the binary price.
Binary options promise high returns quickly, but the reality is you will lose your entire investment most of the time. Here we explain what binary options are and the risks you need to know about before you start trading in them. For example, you could bet on whether the share price of a company will be trading above its current price in one hour. Contract times for binary options are usually very short, from a few minutes or hours, to a few months in the future.
Trading binary options may appear to be simple, but picking the short-term movements of an underlying asset is extremely difficult, even for professionals. There are unlimited variations of these two types of binaries, including combinations with plain vanilla options.
Many structured products contain binary-type rules where the interest on a deposit pays for the binary, on whether an event will or will not occur. Before investing, it is important you understand how the type of binary option you are considering works and how it is priced. You'll also need to be comfortable with the fact that you risk losing all of the money you invest. Most binary option providers operate through online platforms and mobile apps.
Not all platforms and apps that offer binary options are licensed, which is against the law. Many people have lost a lot of money through unlicensed binary options providers. ASIC has been working closely with both Google and Apple to remove unlicensed binary options apps from their app stores. ASIC welcomes Google's move to ban advertising of binary options.
This will help make sure you are less likely to be exposed to risky products and unlicensed operators. Richard visited the company's website and saw that they offered binary options on the shares of some large, well-known companies. Because Richard had a share portfolio and actively followed the share market, he thought he'd give it a go.
He decided binary options were too risky for him and that he'd be better off focusing on his share portfolio.