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The latest markets news, real time quotes, financials and more. This settlement value depends on whether the price of the asset underlying the binary option is trading above or below the strike price by expiration. P 500 rise above a certain level by tomorrow or next week? Will this week’s jobless claims be higher than the market expects?

Or will the euro or yen decline against the U. Buyers and Sellers of Binary Options For the buyer of a binary option, the cost is the price at which the option is trading. For the seller of a binary option, the cost is the difference between 100 and the option price and 100. From the buyer’s perspective, the price of a binary option can be regarded as the probability that the trade will be successful. Therefore, the higher the binary option price, the greater the perceived probability of the asset price rising above the strike.