Prospective traders voice worries that they may be trading "against the house" and that the binary options brokers might have a motive to skew the data towards favorable results for said broker. These skeptics scour the internet searching for terms like "binary option scam" or "xxx scam" etc. And, unfortunately, they are most likely landing on pages containing misinformation regarding the subject. It is time someone who knows how the process actually does work to clear things up.

How The Binary Options "Scam" Operates

The binary options scam operates in the same fashion as the Ford truck "scam" or the McDonald's "scam" works. That is, providing a product or service people want at a price above that of expenses.

Below we will lay out the exact equation by which binary options brokers make their profit. Hopefully, that puts this question to rest once and for all.

Binary options broker profit = -[$$$ Volume Wins*Probability of win (ITM Return % - 1) + $$$ Volume Losses*Probability of loss (OTM Return % - 1)]

In this equation probability is equal to 0.5 for both outcomes (in a hypothetical "efficient market"). As you can see, there simply is no binary options scam. There is more than enough money to be made legitimately as per the equation above. No need for scandalous behavior from the brokers.

For a more detailed explanation including an actual example using real numbers please visit us at:
http://binaryoptionsreviews.biz/

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