1. BINARY OPTION
Binary Option has a fixed payoff. It has two main types: cash-or-nothing and asset-or-
nothing. The first one simply means that if the option expires in-the-money, it pays some fixed
amount. While the asset-or-nothing the underlying security is payed. Aside from the two, there
is also called the All-or-nothing options, digital options and fixed return options.
Aside from some of its regulations, a Binary option is known for only having two possible
outcomes: successful or not. In this situation, the trader will predict if his prediction if
successful of not, if successful, a fixed payout will be received.
Cash-or-nothing Asset-or-nothing
Regarding on its regulation and compliance, Policy change was implemented by the Cyprus
Securities and Exchange Commission on May 3, 2012 which regards to the classification of
binary options as financial instruments. Those binary options effects will be regulated within six
months of the date of the announcement. In addition, it was the first EU MiFID-member
regulator which treated the binary options as financial instruments.
2. Cyprus Securities and Exchange Commission Logo
Overall, Binary options has been popular for traders around the globe for it offers simple and
good approach when it comes to trading. Through their online system, the traders are able to
earn high profit and have a great advantage ahead of them.