Binary options are a type of financial instrument that offers a fixed payout if the underlying asset reaches a certain price (strike price) at a specified time (expiration date). The payout is typically a fixed amount, and the trader receives either the full payout or nothing at all, depending on whether the condition is met.

Here are some key characteristics of binary options:

1. Fixed Payout: The payout is a fixed amount, known at the time of contract inception.

2. Strike Price: The price at which the underlying asset must reach for the payout to be triggered.

3. Expiration Date: The date and time at which the contract expires.

4. All-or-Nothing: The trader receives either the full payout or nothing at all, depending on whether the condition is met.

5. Limited Risk: The trader's risk is limited to the initial investment.

6. Short-Term: Binary options typically have short expiration dates, ranging from minutes to hours or days.

Binary options are often used for speculative purposes, allowing traders to bet on price movements of various assets, such as:

1. Currencies (Forex)

2. Commodities (Gold, Oil)

3. Indices (S&P 500)

4. Stocks

5. Cryptocurrencies (Bitcoin)

Keep in mind that binary options are a high-risk, high-reward instrument, and traders should thoroughly understand the terms and conditions before investing. Additionally, binary options are not available in all countries and are subject to local regulations and restrictions.