Resolutely crack down on illegal propaganda information and unlicensed business practices in binary options. For binary options, the China Securities Regulatory Commission has issued a risk warning. There are essential differences between options and financial derivatives trading supervised by binary options and China Securities Regulatory Commission, and their trading behavior is similar to gambling. The local public security organ has filed a case of online platform fraud in binary options.

Seeing this, most rich people may be confused.

Don't worry, I'll tell you about this scam today.

What is binary options?

Binary options, also known as digital option and fixed income option, is a simplified financial instrument.

Different from traditional financial instruments such as stocks and foreign exchange, it is necessary to consider both the price trend (bullish or bearish) and the fluctuation range. Binary options investors only consider the price trend of the underlying assets (bullish or bearish), and the returns and risks are fixed in advance, which is a bit like the size of the popular dice.

Simply put, investors can choose stocks, indexes, foreign exchange and commodity futures to invest in options on the platform, and choose the underlying assets and maturity time of the transaction. They only need to judge the direction of the rise and fall, and do not need to consider the extent of the rise and fall.

If the investor thinks that the maturity price will be higher than the current purchase price, click bullish, otherwise click bearish. Enter the amount of trading assets, click OK, and then you can wait quietly for the option to expire.

It looks simple, doesn't it? Isn't it a choice of ups and downs? It's easier than the scratch music I bought when I was a child, and the starting threshold of 100 yuan is low. It's not a dream to feel relaxed with a monthly income of 10 thousand.

If you really think so, you are cheated.

How much can you earn by investing in binary options?

Binary options is a win-win speculative product. There are only two results in its income: getting high profits or losing part of its investment. In general, the risk-return ratio of each asset is different, which is generally between 70% and 85%, and the return ratio of investment funds is between 0%- 15%.

The outstanding feature and investment advantage of binary options is that as long as the maturity price of the option is higher than the exercise price at maturity (even if it fluctuates by only a penny), it can get a high' return'.

Therefore, even in the period of market depression, binary options will bring considerable investment returns to investors. On the contrary, if you buy financial products such as stocks or foreign exchange, you need to have large market fluctuations to get a positive return on investment.

That is to say, for every 100 yuan invested by investors, if the prediction is correct, they can earn 70 yuan, and if the prediction is wrong, they also have the opportunity to get 15% of the principal. It seems that everything is under control, but it is not.

Investor A bought binary options who was bullish on a stock at 100 yuan. If he guessed correctly, his income was 70% of the investment; if he guessed wrong, his loss was 85%. This "win less and lose more" design is essentially different from conventional futures and options, and there will always be losses and gains in investment. If the correct rate is 50%, the expected return of investors is (70×0.5)+(-85×0.5)=-7.5, and the loss rate is 7.5%.

Huh? What about the promised high return?

Besides the hidden mystery in the design of odds, binary options also has many traps.

Similar to MMM mutual aid community, binary options mostly operates on the website platform, attracting investors to participate in the transaction with the slogan of "simplicity, convenience and quick return". From account opening to deposit and withdrawal, and then to investors' transactions, they are all conducted online. At the same time, there are many ways to find investors through YY phone call, QQ group customer service and offline development.

However, in the binary options market, the platform uses the "sliding point" to play tricks and prevent customers from withdrawing cash. The so-called "slip point" refers to the inconsistency between the data seen by investors and transaction service providers during the transaction process, which interferes with the investment operation of customers. Even if investors make money and want to quit the transaction, the so-called "analysts" and "teachers calling for orders" will use various reasons to delay investors' departure.

If most investors are not careful, they will become fat in the eyes of platform operators.

In short, there is no reliable and formal binary options trading platform in China, and there are always traps behind high returns.

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