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A binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security.

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Macam aku pernah cerita dalam blog post aku yang lain, kita boleh jadikan binary option ni sebagai insurans untuk forex trading kita. Sebagai contoh kita buat satu entri 'BUY' dalam forex trading biasa dengan risiko tertentu tapi kita buat juga entri 'PUT' binary option ni sebagai trading hedge kita dalam satu tempoh yang sama.

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