It really depends on how the market is structured, what sort of leverage is provided, and margin call policy.
Generally how this scam works is that the 'market' is manipulated to make many accounts hit a margin call, then the exchange or platform closes out those positions at unfavorable prices for the account holders. I'm not sure if secondstrade does this ... but I believe 796xchange in HK does this, so be careful.
Jesse Livermore discusses these tactics in his book "Reminiscences of a Stock Operator" where he refers to the practices of 'bucket shops.' These binary option firms are basically new age bucket shops.
wow what a revelation. do they also do this on penny stocks?
I was actually all my saving thru binary option until i discover these patterns. Using trading systems of MT4 and its indicators help a lot when doing binary but then only lately that i learned binary is not going to make me rich after all.