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Binary options, sometimes called digital or fixed return options, are a simple yet exciting way to trade the financial markets, based on your opinion of whether the price of an asset - such as a share or commodity like gold - will close ABOVE or BELOW the current price over a certain period of time, such as the next one hour. If your prediction is correct, you earn a fixed, pre-determined payout for that particular asset - generally 70%-85% of your investment amount. Like traditional options, binary options are cash-settled and cannot result in the delivery of the underlying asset.