Binary options, also known as digital options and fixed income options, are a "simplified financial instrument".

On November 16, 2016, the WeChat public platform issued an announcement stating that public accounts that publish "binary options" and other illegal and illegal promotion information will be dealt with, and relevant accounts will be permanently banned.

The official website of Chongqing Securities Regulatory Bureau has characterized binary options trading as “similar to gambling” and issued a risk warning. The U.S. FBI launched an investigation into illegal binary options brokers worldwide. The Prime Minister of Israel calls on governments around the world to boycott the binary options industry.

Binary options only consider the price direction of the underlying asset (bullish or bearish)

With traditional financial instruments such as stocks and foreign exchange, investors need to also consider the price direction (bullish or bearish) ) and the range of rise and fall, so binary options are simplified financial instruments. The returns and risks of binary options are fixed in advance, and the returns are only determined by whether the price of the underlying asset meets predetermined conditions. To put it simply, investors can make option investments in stocks, indices, foreign exchange, and commodity futures on the selected platform. They only need to judge the direction of rise and fall before trading, without considering the magnitude of the rise or fall. Some "binary options" websites show that binary options have the characteristics of risk control, higher potential profits, instant income, simple trading, etc. However, the reality is quite different.