Olivia.the.jackson Posted May 8, 2023 Report Share Posted May 8, 2023 Hey guys Can someone explain about binary options? I need to know more about it. thank you. 1 Link to comment Share on other sites More sharing options...
Lee-me Posted May 8, 2023 Report Share Posted May 8, 2023 A binary option is a sort of options contract in which the payoff is wholly dependent on the conclusion of a yes/no proposition, often relating to whether the price of a certain asset will increase above or fall below a certain amount. Let's assume stock Colgate-Palmolive is currently trading at $64.75. A binary option has a strike price of $65 and expires tomorrow at 12 p.m. The trader can buy the option for $40. If the price of the stock finishes above $65, the option expires in the money and is worth $100. The trader makes $60 ($100 – $40). 1 Link to comment Share on other sites More sharing options...
Olivia.the.jackson Posted May 12, 2023 Author Report Share Posted May 12, 2023 It is confusing -_- Can you make another example please? Link to comment Share on other sites More sharing options...
Lee-me Posted May 12, 2023 Report Share Posted May 12, 2023 Binary options are financial options that offer a fixed payout or nothing at all if the contract is kept until expiration. There is no other way to settle an option, which is why it is termed a binary option. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now