A binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all. The two main types of binary options are the.
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Learn about binary options. Also called fixed-return options, these have an expiration date and time as well as a predetermined potential return.
Binary options can be exercised only on the expiration date. If at expiration the option settles above a certain price, the buyer or seller of the option receives a pre-specified amount of money.
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