Binary option - Wikipedia
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It is also possible for EU traders to trade as a ‘professional’. The ESMA rules only apply to retail investors, not professionals. Traders must meet 2 of these 3 criteria to be classed as professional:
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Binary call options pay the predetermined amount providing the price of the underlying security exceeds the strike price at expiration. Similarly, binary put options pay the predetermined price if the price of the underlying security is trading at less than the option strike price at expiration.
A binary option, sometimes called a digital option, is a type of option in which the trader takes a yes or no position on the price of a stock or other asset, such as ETFs or currencies, and the resulting payoff is all or nothing. Because of this characteristic, binary options can be easier to understand and trade than traditional options.
Binary options provide a way to trade markets with capped risk and capped profit potential, based on a 'yes' or 'no' proposition.
The company operated an online trading website through which customers could buy binary options, predicting whether the price of a certain commodity will go up or down in a specific time period, as short as 60 seconds.    Banc De Binary was an associate of SpotOption Exchange which sets the price of the option. The price of the option was not a market price, but was set by SpotOption Exchange itself. 
Trading can be volatile and investors risk losing their investment on any given transaction. However, the design of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to . regulatory oversight by the CFTC.
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