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The downside to binary options trading is that they are known for having extremely short expiration windows and an unusual level of risk, as described in the following sections.Other terms associated with binary options are as follows.Furthermore, unlike other financial derivatives, binary options are not traded on a securities exchange and do not have regulatory oversight.Binary options, like traditional options, allow an investor to speculate on the future movement of an underlying asset.In other words, the CFTC had no power to regulate binary options.Then, the broker presents the client with a Statement of Relationship (the commitment or agreement of the broker to deal with the customer or end client), a copy of the NFA/CFTC/SEC Code of Ethics, and a copy of the broker's operating rules.Binary options trading is risky.This is misleading and illegal.
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Make sure to check with your broker to find out the costs involved in withdrawing your funds.If you would not be willing to take the risk, you should not take the contract.If you see the warning signs of fraud at your next binary options trading site, you can file a complaint to FINRA.Additionally, a binary options contract purchaser must contact FINRA.Trading in binary options is considered gambling by some, but not all regulators and governments.And as soon as an option expires, either a profit or a loss results.In recent years, the number of binary options platforms not registered with a government has surged.
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