What Does "Binary" Mean?

Binary event futures and options allow traders to take a “yes” or “no” position on whether or not an event will take place on or by a specified date, as outlined in the contract. The buyer of this contract holds the right to collect a fixed cash payout if the defined event occurs.

Unlike regular futures contracts, the maximum payout is known upfront as well as the maximum loss, so the risk is clearly defined for the investor on either side of the trade.