What are Binary Options?

First off, what are binary options?

The purpose of this site is to EXPOSE this crazy business and it's fraudulent practices. I see many false sites out there which are only DIVERSIONS to keep the truth from getting out there.

A binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all. While binary options are used in a theoretical framework as the building block for asset pricing and financial derivatives (a binary option maps to the cumulative distribution function of the risk-neutral distribution, they have been exploited by fraudulent operations as many binary option outlets (outside regulated markets) have been shown to be scams. 

The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing 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.

How Do Binary Options Work?

A binary option asks a simple yes/no question:

Will this market be above this price at this time? 

If you think yes, you buy the binary option.

If you think no, you sell.

Either way, your price to buy or sell is between $0 and $100. Whatever you pay is your maximum risk. You can't lose any more.

Hold the option to expiration and if you're right, you get the full $100 and your profit is $100 minus your purchase price.