Binary addition and subtraction table

It also highlighted the risk of binary options scams, whereby online firms take money from punters but never actually place bets for them, and the potential conflicts of interest associated with the business model.

In a separate announcement on Tuesday, the FCA issued a formal warning to investors on the risks of cryptocurrency derivatives offered by online trading companies. A number of platforms have rushed to offer contracts-for-difference based on digital currencies such as bitcoin and ether, as the prices of the underlying assets have surged in recent months. CFDs track the price of an underlying asset and allow investors to leverage their bets, magnifying gains or losses.

In some cases, they could end up owing money to the firm, it said.