Essentials Flashcards
7 cards from real Binary Trading practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Essentials flashcards as text
Which U.S. agency regulates legitimate exchange-traded binary options?
Answer: The CFTC
The CFTC oversees designated contract markets that legally offer binary options in the U.S.
A common warning sign of a fraudulent binary options broker is what?
Answer: Refusing or delaying client withdrawals
Blocking or stalling withdrawals is a frequent red flag of unregulated, fraudulent binary brokers.
What is a legitimate U.S. exchange where binary options can be traded?
Answer: Nadex
Nadex is a CFTC-regulated exchange offering binary options to U.S. traders.
Why do many off-exchange binary platforms operate offshore?
Answer: To avoid U.S. registration and regulation
Many operate offshore specifically to evade U.S. registration requirements and oversight.
What should a trader verify before depositing with a binary options broker?
Answer: That it is registered with the appropriate regulator
Confirming regulatory registration is the most important step before funding any account.
Account bonuses on binary platforms often come with what catch?
Answer: High-volume trading requirements that lock up withdrawals
Bonuses typically impose large turnover requirements that prevent withdrawing funds.
Identity theft risk arises with shady binary brokers because they often request what?
Answer: Copies of IDs and credit card details that may be misused
Fraudulent operators collect IDs and card data that can be misused for identity theft.