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What Is a Binary Option?

 

Also called a fixed-return or digital option, a binary option pays the holder a pre-determined cash amount on the sole condition that the option will expires in-the-money. This cash amount is set forth in the option's terms and is the same regardless of the degree to which the underlying asset's price moves in the holder's favor. For such options which expire in-the-money, GlobalOption pays holders 75% profit. For options which expire out-of-the-money, GlobalOption pays holders a complementary 10% return. Please note that a binary option cannot be sold in advance of its expiration date.

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