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The contracts are sold to investors with high liquidity requirements and require no transactions at all.The fraudster may have an elaborate sales pitch, promising to help the victim recover their money and assure them that they will be taking part of a special money-back guarantee policy.At present, there are only 10 binary options trading companies that have been approved to trade by the CFTC.CFTC Chairman Heath Tarbert has stated that “We need to make sure the binary options market evolves in the right direction.Companies that have applied for a permit will be issued a registration number by the State of Washington.A wide range of binary options scam operations can be distinguished from those they share with legitimate binary options trading.Margins can be charged for each trades and are frequently much higher than for over-the-counter products.If the contract you are looking at isn't regulated, such as with binary options, be very careful.50, or 100 percent of his initial investment; for the buyer of the call option, he has lost .

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Market makers, brokers, and other intermediaries act in ways that usually help to ensure that buying and selling is conducted efficiently and without fraud.Binary Options Trading cannot be compared with conventional stock or Forex trading due to the nature of this financial product.If you see binary options trading firm that is losing money, there is a good chance the firm is a scam.About 40% of binary options trades are fraudulent in nature.Some binary options involve physical commodities rather than financial assets.In this article we will be looking at how option trading works.However, it is important that you join an exchange that is legitimate, safe and transparent, as with other forms of trading.

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