Binary Options:

A binary option (also known as an all or nothing option) is an option where a fixed payout is made under conditions defined in the option's contract. These conditions can be formed by one or two American or European Barriers.

If the barriers are American they can be touched at any time during the option's life.

If the barriers are European the spot level at the expiry date is followed to The fixed payout is made on the option's delivery date in the base currency, and is based on whether the option is on the money or not, not by how much it is in the money.
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