SCAM. Read the SEC warning link below. A little math for the expected value of your example:
E = P(lose) * Value(lose) + P(win) * Value(win) = (.5 * 75) + (.5 * -100) = -12.5%
No way anyone beats those odds long term.
they have to make money somehow. But you will lose everything you send them. So don't.
I get emails about how binary options can be used to make a lot of money while other reports say they are a scam. I followed stock options for a week and the price for the option is the same as the stock market. These binary brokers don't charge a fee for getting into or out of an option. If I invest $100 in one and win I can have $170 in 15 minutes but if I am wrong I lose it all. Since I pay no commission to firms for binary trades do they make money on my losing trades? Should I consider these types of options or are they a scam?
