currency binary

Definition

Forex

  • A type of currency trade used as a hedge strategy or for speculation in which a trader will realize 100% of the profits should an exchange rate position reach a specific strike rate, or zero profits should it not.  For example, if a binary position is opened when the JPY/EUR is at 115 with a 120 strike rate, the trader will realize 100% of the profits if the rate reaches 120 or nothing if it does not.
http://www.dictionarycentral.com/definition/currency-binary.html