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Binary Option


What does Binary Option mean?

0 and 1 are Binary digits. In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The payoff is a fixed amount if the option expires in the money. The payoff is zero if the option expires out of the money. In a Binary option, the holder cannot buy or sell the underlying asset. And the option expires at the end and he gets payoff zero of the fixed amount depending on closing price.

Futures Knowledge Explains Binary Option

You can buy an option which gives you right to get $100 if the S&P 500 will be up 25 points when trading closes and you don’t get anything if you’re wrong.



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