Binary options vs spot fx clearing

In finance, an option is a contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on a specified date, depending on the form of the option. The strike price may be set by reference to the spot price (market price) of the. . Interest rate options; Currency cross rate options, and; Options on swaps or.

Why invest in binary options

A binary option is a financial exotic option in which the payoff is either some fixed monetary. [A] binary may be trading at $42. 50 (bid) and $44. 50 (offer) at 1 p. m. If you buy the binary option right then you will pay $44. 50, if you decide to sell.