Binary option

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Binary option

An option where the payoff is a fixed amount of an asset or nothing at all.

Binary Option

An option contract in which the payoff is some set price or nothing. For example, suppose the strike price on a binary option is $100 and the payoff is $250. If the underlying asset is above $100 when the option is exercised, one receives $250. Otherwise, one does not receive anything. A binary option is also called an all-or-nothing option. See also: Exotic option.
References in periodicals archive ?
ASIC has released a consultation paper Product intervention: OTC binary options and CFDs (CP 322) on proposals to use its product intervention power to address significant detriment to retail clients resulting from over-the-counter (OTC) binary options and CFDs.
ASIC, the market watchdog in the nation said that it is plans to ban the sale of binary options to retail customers.
In March this year, the Financial Conduct Authority banned UK firms from marketing binary options to small investors, describing them as "gambling products dressed up as financial instruments".
During the first quarter on the year, product intervention measures from the European Securities & Markets Authority came into effect, knocking revenue, while there was also a ban on offering binary options to retail clients to contend with.
'As with our work on the wider CFD and binary options markets, we will act when we see poor products being sold to retail consumers.
We'll also continue to ban ads for initial coin offerings as well as ads for binary options. As with all ads on Facebook, we require the ad's text, targeting, positioning, images and content on the landing page comply with this updated policy as well as with all of our Advertising Policies and Community Standards...
Unregulated investments that have been targeted for raids by the FCA include boiler-room scams, unregulated high-risk investments in binary options, overseas property and wine.
"The public is hereby advised to stop engaging in foreign exchange trading and to stop investing in foreign-registered investment platforms of commodity futures, contracts for difference (CFDs), indices, binary options and the like," the SEC said.
Ads promoting binary options and ICOs, initial coin offerings, are still banned.C[macron]
Facebook announced a broad policy in January this year which prohibited 'ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency'.
Numerous regulators including the Financial Conduct Authority have warned against binary trading or binary options because sites have a habit of disappearing with punters' cash.