Back خيارات ثنائية Arabic Binar opsion Azerbaijani Binární opce Czech Binær option Danish Binäre Option German Opción binaria Spanish باینری آپشن Persian Binäärioptiot Finnish Option binaire French אופציה בינארית HE

Binary option

A binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all.[1][2] The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The former pays some fixed amount of cash if the option expires in-the-money while the latter pays the value of the underlying security. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and fixed return options (FROs) (on the NYSE American).[3]

While binary options may be used in theoretical asset pricing, they are prone to fraud in their applications and hence banned by regulators in many jurisdictions as a form of gambling.[4] Many binary option outlets have been exposed as fraudulent.[5] The U.S. FBI is investigating binary option scams throughout the world, and the Israeli police have tied the industry to criminal syndicates.[6][7][8] The European Securities and Markets Authority (ESMA) has banned retail binary options trading.[9] Australian Securities & Investments Commission (ASIC) considers binary options as a "high-risk" and "unpredictable" investment option, [10] and finally also banned binary options sale to retail investors in 2021.[11]

The FBI estimates that the scammers steal US$10 billion annually worldwide.[12] The use of the names of famous and respectable people such as Richard Branson to encourage people to buy fake "investments" is frequent and increasing.[13] Articles published in The Times of Israel newspaper explain the fraud in detail, using the experience of former insiders such as a job-seeker recruited by a fake binary options broker, who was told to "leave [his] conscience at the door".[14][15] Following an investigation by The Times of Israel, Israel's cabinet approved a ban on the sale of binary options in June 2017,[16] and a law banning the products was approved by the Knesset in October 2017.[17][18]

On January 30, 2018, Facebook banned advertisements for binary options trading as well as for cryptocurrencies and initial coin offerings (ICOs).[19][20] Google and Twitter announced similar bans in the following weeks.[21]

  1. ^ Breeden, D. T., & Litzenberger, R. H. (1978). "Prices of state-contingent claims implicit in option prices". Journal of Business, 621–651.
  2. ^ Gatheral, J. (2006). The volatility surface: a practitioner's guide (Vol. 357). John Wiley & Sons.
  3. ^ Binary Option Definition Investopedia. Retrieved 2013-06-30.
  4. ^ Cite error: The named reference Globes 12-15-16 was invoked but never defined (see the help page).
  5. ^ "Binary Options Fraud". Federal Bureau of Investigation. Retrieved 2017-05-30.
  6. ^ Weinglass, Simona (February 15, 2017). "FBI says it's investigating binary options fraud worldwide, invites victims to come forward". The Times of Israel. Retrieved February 15, 2017.
  7. ^ Cite error: The named reference ToIidesofM was invoked but never defined (see the help page).
  8. ^ Cite error: The named reference :1 was invoked but never defined (see the help page).
  9. ^ "ESMA agrees to prohibit binary options and restrict CFDs to protect retail investors". www.esma.europa.eu. Retrieved 2019-03-21.
  10. ^ "Binary Options Trading In Australia: How Safe Is It?". International Business Times AU. 2018-05-14. Retrieved 2018-05-22.
  11. ^ "21-064MR ASIC bans the sale of binary options to retail clients". Australian Securities & Investments Commission. Retrieved 8 March 2022.
  12. ^ Weinglass, Simona (March 4, 2017). "As Israel-based financial fraud soars, police swoop on 20 suspects as part of global, FBI-led sting". The Times of Israel. Retrieved March 4, 2017.
  13. ^ Press Association (18 May 2017). "Richard Branson says scammers are using his name to dupe investors". The Guardian. Retrieved 18 May 2017.
  14. ^ Cite error: The named reference israeltimes1 was invoked but never defined (see the help page).
  15. ^ Cite error: The named reference israeltimes2 was invoked but never defined (see the help page).
  16. ^ Tova Cohen (June 18, 2017), "Israel cabinet approves ban on sale of binary options", Reuters, retrieved 2017-07-15
  17. ^ Weinglass, Simona (October 23, 2017). "Israel bans binary options industry, finally closing vast, 10-year fraud". The Times of Israel. Retrieved October 24, 2017.
  18. ^ Tomer, Uri (2017-10-24). "Israel Bans Binary Options Industry That Defrauded Millions". Haaretz. Retrieved 2017-10-24.
  19. ^ Frier, Sarah; Verhage, Jules (January 30, 2018). "Facebook Bans Ads Associated With Cryptocurrencies". Bloomberg. Retrieved February 7, 2018.
  20. ^ Cornish, Chloe (January 30, 2018). "Facebook and regulators move to halt cryptocurrency scams". Financial Times. Archived from the original on 2022-12-10. Retrieved February 7, 2018.
  21. ^ Weinglass, Simona (March 28, 2018). "European Union bans binary options, strictly regulates CFDs". The Times of Israel. Retrieved March 21, 2019.
From Wikipedia, the free encyclopedia · View on Wikipedia

Developed by Tubidy