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Though binary options sometimes trade on regulated exchanges, they are generally unregulated, trading on the Internet, and prone to fraud. The US Securities and Exchange Commission and Commodity Futures Trading Commission have issued a joint warning hedging binary options strategy American investors regarding unregulated binary options futures strategies, and strxtegy forced a major operator, Banc de Binary, to cease operations in the US and pay back all customer losses.

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Trading binary options may not be suitable for everyone, so please ensure that you fully understand the risks involved. Your losses can exceed your initial deposit and you do not own or have any interest in the underlying asset.

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