A binary option is a cash-settled option having only two possible payoff outcomes: either a fixed amount or nothing at all.
Some binary options are referred to as “fixed return options.” As of the date this product was approved for trading, the only binary options approved for trading (other than credit default options, as defined below) are binary stock options, which are binary options on individual equity securities, including fund shares; and binary index options, which are binary options on broad-based securities indexes (including volatility indexes).
