Binary Options: Beyond Good or Efil

Sebarkan Artikel Ini: – In the case of binary options, first, we must know what a binary option is. So, according to Wikipedia, binary options are financial exotics in which the payoff is either some fixed monetary amount or nothing at all.

The two main types of binary options are cash-or-nothing binary options and asset-or-nothing binary options. The former pays some fixed amount of cash if the expired option is in the money, while the latter pays the value of the underlying security.

Binary options have an expiry date and/or time. At the expiration time, the underlying asset’s price must be on the right side of the strike price (based on the trade taken) for the trader to gain a profit.

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A binary option is automatically exercised, meaning the gain or loss on the trade is automatically credited or debited to the trader’s account when the option expires.

That means, the buyer of a binary option would either receive a payout or lose the entire investment in the trade (like there is nothing in between). Conversely, the seller of the option would either retain the buyer’s premium or be required to make the total payout.

Binary options are based on a simple ‘yes’ or ‘no’ preposition. These are more often considered a form of gambling than an investment because of their negative cumulative payout and are advertised as requiring little or no knowledge of the markets.

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Of course, many people want to invest their money in lockdown during this pandemic period. And luckily, binary options are already spread a lot in website advertisements or using Brooker. People can easily use the platform to invest their money without learning how to do it first.

They are easily taken advantage of because they lack trading skills. They will lose their entire money and get tricked or cheated.

This is the risk and problem that traders must face with the consequences. In trading, we know that there are positive or negative things that we get from trading. They would realize when they were tricked.

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So, this is the risk when we use illegal infestation. Many lessons can be drawn from the binary options fraud. We can save our money in the bank or use our money to build some businesses instead of having to lose all the money without getting anything.

The most important thing that we must know if we try to invest is that we must learn first about illegal or legal investments, so we can trust that our money will be safe.

Ipii Tokan adalam nama pena dari Siprianus Senuken Medhon –  Mahasiswa Pendidikan Bahasa Inggris – FKIP – Universitas Sanata Dharma Yogyakarta. / Foto ilustrasi dari pinterest

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