Key Points About Binary Options In finance, a binary option is a type of option in which the payoff can take only two possible outcomes, either some fixed monetary amount (or a precise predefined quantity or units of some asset) or nothing at all (in contrast to ordinary financial options that typically have a continuous spectrum of payoff).
The two main types of binary options are the cashornothing binary option and the assetornothing binary option . The cashornothing binary option pays some fixed amount of cash if the option expires inthemoney while the assetornothing pays the value of the underlying security. They are also called allornothing options , digital options (more common in forex/interest rate markets), and fixed return options (FROs) (on the American Stock Exchange).
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assetornothing binary option. The cashornothing binary option pays some fixed amount of. cash if the option expires inthemoney while the assetornothing pays the value of the. underlying security. They are also called allornothing options, digital options (more common in. forex/interest rate markets), and fixed return options ...
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Page 1 of 2. Key Points About Binary Options. In finance, a binary option is a type of option in which the payoff can take only two possible. outcomes, either some fixed monetary amount (or a precise predefined quantity or units of. some asset) or no
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