Professionals

4. Why is the distribution of binary options and derivative contracts with a maturity of less than an hour prohibited?

Binary options and instruments with a short maturity are extremely risky, even arbitrary, and have nothing in common with an investment or a financial transaction. These instruments are comparable to a game of chance in which, mostly over a very short period of time, bets are placed on the change in an underlying asset. Such an instrument is binary in nature: either the consumer receives a predetermined payment if the underlying asset moves in the direction chosen, or if it does not, the consumer loses the entire investment. Such instruments have no link to the real economy and are therefore purely arbitrary. Instruments of this nature thus do not permit the investor to make an investment in the classic sense of the term.