IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/85061.html
   My bibliography  Save this paper

Recent developments in investment fraud and scams: Contracts for Difference (‘CFD’) spread betting and binary options and foreign exchange (‘Forex’) sometimes collectively known as ‘forbin’ – the UK experience

Author

Listed:
  • BARNES, PAUL

Abstract

This paper discusses investor trading schemes for CFDs, spread betting, binary options and forex, what are effectively financial derivatives, designed for investors to speculate on market movements. It is argued that it is not possible for investors to consistently ‘beat the market’ unless they have inside information and frequent trading will result in losses. It is also shown how these derivatives are used in scams and frauds designed to dupe naïve investors. The final section of the paper examines how the UK regulators, principally the Financial Services Authority (later the Financial Conduct Authority) have attempted to combat fraud and abuse and their prosecuting and preventative efforts.

Suggested Citation

  • Barnes, Paul, 2018. "Recent developments in investment fraud and scams: Contracts for Difference (‘CFD’) spread betting and binary options and foreign exchange (‘Forex’) sometimes collectively known as ‘forbin’ – the UK e," MPRA Paper 85061, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:85061
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/85061/1/MPRA_paper_85016.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barnes, Paul, 2010. "Insider dealing and market abuse: the UKs record on enforcement," MPRA Paper 25585, University Library of Munich, Germany.
    2. Paul Barnes, 2010. "Stock market efficiency, insider dealing and market abuse: the UK experience," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 5(1/2), pages 38-50.
    3. barnes, paul, 2016. "Stock market scams, shell companies, penny shares, boiler rooms and cold calling: the UK experience," MPRA Paper 71562, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Barnes, Paul, 2021. "The use of contracts for difference (‘CFD’) spread bets and binary options (‘forbin’) to trade foreign exchange (‘forex’) commodities, and stocks and shares in volatile financial markets," MPRA Paper 105580, University Library of Munich, Germany, revised 28 Jan 2021.
    2. Golnaz Shahtahmassebi & Lascelles Wright, 2021. "Profit and loss manipulations by online trading brokers," Papers 2107.14055, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul BARNES, 2018. "Crypto Currency and its Susceptibility to Speculative Bubbles Manipulation Scams and Fraud," Journal of Advanced Studies in Finance, ASERS Publishing, vol. 9(2), pages 60-77.
    2. Andreea Nicoleta Donici & Alexandra Diaconu, 2010. "The Economic – Financial Crisis 2007 – 2009," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 2(3), pages 17-26, September.
    3. KapSoon Kim & SungMan Yoon, 2017. "Taxpayer’s Perception to Tax Payment in Kind System in Support of SMEs’ Sustainability: Case of the South Korean Government’s Valuation of Unlisted Stocks," Sustainability, MDPI, vol. 9(9), pages 1-12, August.
    4. barnes, paul, 2016. "Stock market scams, shell companies, penny shares, boiler rooms and cold calling: the UK experience," MPRA Paper 71562, University Library of Munich, Germany.
    5. Barnes, Paul, 2010. "Insider dealing and market abuse: the UKs record on enforcement," MPRA Paper 25585, University Library of Munich, Germany.
    6. Barnes, Paul, 2021. "The use of contracts for difference (‘CFD’) spread bets and binary options (‘forbin’) to trade foreign exchange (‘forex’) commodities, and stocks and shares in volatile financial markets," MPRA Paper 105580, University Library of Munich, Germany, revised 28 Jan 2021.

    More about this item

    Keywords

    Stocks; shares; securities; contracts for difference; CFD; spread betting; binary options; forex; forbin; scam; fraud.;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:85061. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.