is binary options a scam?

is binary options a scam?

Question by supergoku: is binary options a scam?
i was just searching for some ways to get free some cash online easily and there are many websites listed such as 24options,traderush,anyoption etc where you had to just call the share and you earn money,i ran a couple of searches and they say it is pretty legit so i would like to know if this is a scam ,if any of you have earnt anything,plz let me know!


Best answer:

Answer by Brian Taylor
If you don't know what you're doing you're more likely to lose than win. 97% of options expire worthless/out of the money. You're not going to get any free cash online, you're going to be placing a bet on a price of an underlying assets price on the expiration of the option. I strongly suggest you read up on options theory before beginning any trading activities, you will need to know what you are doing, or at least why things go a certain way, before you start trading otherwise you're just as likely to get free money going to vegas and putting it all on red. Actually you're more likely to get free money going to vegas and putting in all on red if you have no indication of how the underlying is performing, what the outlook is until expiration, etc.

*SUMMARY -- not a scam but unless you're informed you're more likely than not setting your money on fire. Which by all means go ahead and do. In a binary option your bottom end risk is limited, you can only lose the premium you pay for the option itself, so it's moderately safer than just selling naked puts or something else looney but hey. It's also limiting your top-side profit if you were to graph your risk on a chart. THERE IS RISK.

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