Binary options have been the rage in the forex market, the options being one of the most popular and profitable products at many brokers. Also known as “exotics” their popularity stems from their similarity of making bets at a bookmaker.
A binary option is essentially a “bet” or wager. It is structured such that you will get paid a fixed amount if you are right, or nothing if you are wrong. In the case of forex, if a certain currency pair, say EUR/USD closes above a certain price on a certain date, you will get paid. If not, you will lose your wager.
Binary options are available in most places outside the US Market. Some brokers offering binary options include:
- IG Markets