Binary options allow traders to make predictions on time-bound conditions on predefined values of forex, stock indices, commodities, and events. Every binary option has a pre-determined strike price, an option premium, and an expiry. The differentiator is the settlement price remaining fixed at $0 or $100, based on the option condition that is being fulfilled. The net profit or loss is kept fixed by it. The option premium also remains fixed from $0 to $100.