What are binary options, what can they be traded on and what is the process in trading them?
Also, are there any brokers in Australia who offer binary options?
Binary options is a type of option where the payoff is either some fixed amount of some asset or nothing at all. When you trade binary options a trader who thinks that the EUR/USD strike price will close at or below 1.2500 at 3:00 p.m. can buy a put option or sell the contract.
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1In other words, a straight up bet, like putting $20 on black at the roulette table. I'll add investopedia's link: investopedia.com/terms/b/binary-option.asp#axzz1noyYGifL – Patches Mar 1 '12 at 0:43
