Binary options vs spot fx contract

A binary option is a financial exotic option in which the payoff is either some fixed monetary. In the online binary options industry, where the contracts are sold by a broker to a customer in an OTC manner, a different option pricing model is used. . . Similarly, paying out 1 unit of the foreign currency if the spot at maturity is.

Binary options on forex

A binary option is a financial exotic option in which the payoff is either some fixed monetary. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and fixed return options (FROs) (on the.