Binary options are quite simply a form of option that offers one of two outcomes and hence the name ‘binary’ which typically describes an outcome of either 0 or 1.

I was first attracted to binary betting due to its tax-free status (like spread betting, it’s classed as gambling rather than investing) but I wasn’t so keen on the fact that fixed-odds binary bets work rather like traditional financial options. In any case I’ve been dabbling in them.