Binary options, also known as "digital options" or "all or nothing options" -are choices that pay a fixed amount and default depending on whether an event does not occur or for a period of time before the option expires. As its name suggests, binary options can have only one of two possible outcomes and you allow easy answer of "Yes or No". For example, will it end the exchange value of the Canadian dollar to US dollar above the current price in the course of an hour? If the answer is "YES", the binary option is placed as "in the money"; if it is "NO", the binary option is placed as "out of money". Like any traditional option, binary options are based on an underlying asset such as currencies, stocks or property. But unlike contracts for difference (CFD), a binary option carries no margins or boundaries, for in them you know exactly how much you can gain or lose from the start. Binary options are simple and they are ideal for players who want the opportunity to earn income in the short term with strictly limited risk. Warning: binary options betting are speculative and involve risk.