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A binary option is a simplified options contract that looks more like online gambling than a traditional security or investment . The binary option contract is based on the investor’s prediction of an underlying security’s value at a predetermined date Pocket Option Signal . There are only two possible outcomes: the investor may receive a fixed amount of money for guessing correctly, or lose the entire investment for guessing incorrectly.
Does Pocket Option have bots? Pocket Option Bot "2Bot" is designed for those who want to automate their trading on the Pocket Option platform. With it, you can easily set up and launch automatic trading in the binary options market.
What documents are needed for Pocket Option address verification? Acceptable documents include bank statements, address certificates, or utility bills not older than three months. Ensure the uploaded documents are clear, colored, and unedited. Bank card verification. If you intend to withdraw funds using a card, Pocket Option will request card verification.
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For example, an investor enters into a binary option contract worth $100 that promises to pay the investor a 95% return if Company ABC’s stock rises from its current trading price of $20 per share to $25 per share by a certain date. If it does, the payout is 195% of the contract’s original value, or a total of $195 ($100 + $95). If it doesn’t, the payout is $0 – a complete loss of the original investment.
Beware of Scams
While some binary options are offered on a registered exchange or a designated contract market subject to SEC and CFTC oversight, the amount of Internet-based trading platforms has surged in recent years Pocket Option Strategy . Many are these platforms are unregulated or are completely illegal.
Binary option contracts are an attractive strategy for scammers because they target unsophisticated investors with a simple-to understand “investment opportunity” and a perceived low entry cost. The contracts can be executed for hourly, daily or weekly terms. Illegal or fraudulent binary option issuers and platforms have refused to pay out on investors’ contracts; have stolen and sold investors’ personal and financial information, such as bank account and credit card numbers; or have based the platform on software that favors the scammers by generating losing trades for the investor.
Before You Buy
Before considering binary options, check with the following regulators to verify registration:
Financial professional licensing:
Washington State Department of Financial Institutions - 1-877-746-4334 or FINRA’s BrokerCheck.