My WordPress Blog
In the financial world, a binary option is a type of option where the payout can be made by either a fixed sum of an asset or not. The two main types of binary options are cash-or-nothing and asset-or-nothing. The cash-or-nothing binary option is paid when the fixed value of cash expires in the money, while the asset-or-nothing option is used to pay the value of the actual security. The options are called binary options because of the inherent nature of only two different results: when a previously defined
For a long time contracts for binary options were available “above the shop table”. That is, they were passed directly from the seller to the buyer. They were generally rated as “exotic” instruments and there was not yet a regular market where they could trade with them. Since the middle of 2008, there are websites for binary options, also called platforms, which offer a simplified version of the tradable options. In 2012 it was estimated that there are now around 90 of these platforms that offer this trade