Binary options or also known as all-or-nothing options, or digital options. These are a financial option in which the payoff is either some fixed monetary amount or nothing at all. The two main types of Binary options are the “cash-or-nothing” and the “asset-or-nothing options.The “cash-or-nothing” option pays some fixed amount of money if the option expires while in-the-money. While the “asset-or-nothing” options pay the value of the underlying security.
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