Binary option
A binary option is a fixed-payout bet on whether a reference price will be above or below a level at a set time: a correct guess pays a predetermined amount, an incorrect one loses the stake. Offered honestly it is a real, if house-favoured, product; the platform operating as the sole counterparty is what makes it possible for that same platform to fabricate or alter the result instead of settling it against a genuine price.
Where does binary option come up?
This term is used in the following manipulation techniques, each explained in full on its own page.
Enforcement actions involving these techniques
| Action | Agency | Filed | Technique | Penalty | Status |
|---|---|---|---|---|---|
| CFTC v. Glenn Olson (rigged binary options execution, 2021) | CFTC | 2021-04-06 | Rigged Binary Options Execution | — | settled |
| CFTC v. Cartu et al. (rigged binary options execution, 2020) | CFTC | 2020-09-02 | Rigged Binary Options Execution | — | filed |
| CFTC v. Cartu et al. (rigged binary options execution, 2024) | CFTC | 2020-09-02 | Rigged Binary Options Execution | $153m | judgment |
| CFTC v. Jared J. Davis (rigged binary options execution, 2019) | CFTC | 2019-09-17 | Rigged Binary Options Execution | — | filed |
| CFTC v. Jared J. Davis (rigged binary options execution, 2023) | CFTC | 2019-09-17 | Rigged Binary Options Execution | — | settled |