FINRA Issues Investor Alert—Binary Options: These All-Or-Nothing Options Are All-Too-Often Fraudulent
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) today issued a new Investor Alert, Binary Options: These All-Or-Nothing Options Are All-Too-Often Fraudulent. FINRA published the alert to warn investors that trading binary options can be extremely risky. Unlike other types of options contracts, binary options are all-or-nothing propositions. When a binary option expires, it either makes a pre-specified amount of money, or nothing at all, in which case the investor loses the entire investment.