Binary option explanation

[Migge1990]

In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. 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. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and fixed return options (FROs) (on the American Stock Exchange). Binary options are usually European-style options.

[Dele Alli]

Sometimes, I feel sad that people get scammed even when things are so simple and even with common sense we can mark out the scam yet people fail to do it. We have really forgotten the value of common sense which has cost us badly!