In finance, a binary option is a type of alternative where the benefit could take simply two possible results

In financing, a binary alternative is a kind of choice where the reward can take just two feasible end results, either some fixed financial quantity of some property or absolutely nothing at all (in comparison to regular financial options that usually have a continuous spectrum of benefit). The two major types of binary options are the cash-or-nothing binary alternative as well as the asset-or-nothing binary alternative. The cash-or-nothing binary alternative pays some fixed amount of money if the option ends in-the-money while the asset-or-nothing pays the value of the underlying safety and security. They are also called all-or-nothing alternatives, digital alternatives (even more common in forex/interest rate markets), and also repaired return choices (FROs) (on the American Stock Exchange). [1]
When getting a binary alternative the possible return it provides is certain and understood prior to the purchase is made. Binary choices can be purchased on virtually any economic item as well as can be bought in both directions of trade either by getting a "Telephone call"/"Up" option or a "Put"/"Down" choice. Binary alternatives are offered versus a dealt with expiry time.