GlossaryProducts & contracts

Forex binary option

A fixed-outcome contract referenced to a currency pair, with settlement determined by the broker's stated expiry and price source.

Do not confuse

Common comparison error

Automatic settlement under Forex binary option is not a manual early-exercise right and should not be inferred from Commodity binary option.

Practical use

How to verify Forex binary option

Read Forex binary option together with Index binary option, Commodity binary option, Binary option. The comparison must preserve the exact rule, value, state, and evidence described below.

A neutral example

A 100-unit Forex binary option references EUR/USD, pays 80 net above 1.0850 at 14:05 UTC, loses 100 below, and refunds equality; Index binary option is specified separately. This cannot be swapped with a neighboring term: for Forex binary option, a currency-pair reference still needs quote side, source, expiry, and fixed-outcome terms.

Evidence path

Where to verify Forex binary option

Use the source that governs the exact contract, account, entity, or platform state. A general definition cannot replace current broker terms.

Broker contract specificationConfirm the outcome condition, strike or barrier, observation window, expiry, payout, tie rule, and settlement record for the exact product.

CFTC binary options resourcesReview product-risk and fraud explanations published by the U.S. derivatives regulator.Open source