Currency Binary
For people who are interested in trading currencies, currency binary is one thing that they should be familiar with. This is a relatively new trading strategy which involves betting on whether the exchange rate will fall or rise.
Investopedia explains:
“For example, assume that the exchange rate for the EUR/USD is currently 1.25; an investor who buys a currency binary at a strike exchange rate of 1.30 is betting that the exchange rate will be 1.30 or greater on the expiration date. If this occurs, the investor will receive a set payoff amount, no matter how far above 1.30 the exchange rate settles. If the exchange rate at expiration is less than 1.30, the long investor receives nothing.”
