What are Binary Options?

Binary options is the common name of an instrument that offers just two outcomes. Yet what should be the settlement price of the put and call if the underlying asset settles exactly on the strike? This site argues for a ‘dead heat’ where the settlement price for both call and put is 50.

‘Binary options’ and ‘digital options’ are interchangeable. Other names such as ‘all-or-nothing options’ and ‘fixed return options’ are the same as binary (or should that be trinary?) options.

The Machine Code of Financial Markets?

At the root of financial markets are the ‘0’s and ‘1’s of binaries, capital markets very own machine code. It is no exaggeration that every single financial instrument ever invented is made up of a structure of binary options. In effect, all financial instruments are derivatives of binary options.

The aim of this site is to provide a balanced view as to what these much maligned financial instruments offer. A recognition of their unique place in financial markets.

Instruments

On this site are listed a rare abundance of binary options. There are more binary options instruments than conventional options instruments. As well as European and American options, any barrier can rightly be referred to as a binary option. Two asset binary options will further be added to the list.

Financial Regulation

A site focussing on binary options would be incomplete without a take on regulation. Bland definitions of ‘investment’ and ‘gambling’ do little to define the difference. Indeed, there is a provocative view put forward that investment does not exist, that everything is gambling. 

This site’s mission is to educate traders, regulators, financial engineers and the media as to what binary options really are.

Reviews of Operators

At present we only support one broker, that being Deriv.com. The reason is simple enough. Operators like PocketOption.com are dishonest. Deriv.com is the only honest outfit we know and we’ve been dealing with them for a long time.

The products offered on the Deriv.com website include binary options, contracts for difference (“CFDs”) and other complex derivatives. Trading binary options may not be suitable for everyone. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on the website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money. Before trading in the complex products offered, please be sure to understand the risks involved.