Binary Contracts

Binary Contracts offer a distinct trading experience compared to Perpetual Contracts (Perps). Here are the key differences and how they work:

• Binary Outcome Betting Traders speculate on a simple yes/no question — for example: “Will Bitcoin’s price be above a specific target price 15 minutes from now?”

• Pricing Reflects Probability Contracts are priced in cents (between $0.00 and $1.00), where the price directly represents the market’s current estimated probability of the “Yes” (above target) outcome occurring at expiry.

  • $0.00 = 0% probability

  • $1.00 = 100% probability Example: Buying (going long) at $0.45 means you’re paying 45 cents per share, implying the market assigns a 45% chance of the price being above the target at expiry.

• Available Expiry Durations Binary Contracts come with fixed lifetimes: 15 minutes, 1 hour, 4 hours, or 24 hours.

• Trading Flexibility You can enter or exit positions at any time before expiry by trading on the order book (buying or selling shares at current market prices). Alternatively, hold until expiry:

  • If the final asset price meets the condition (above target) → contract resolves to $1.00 per share

  • If not → contract resolves to $0.00 per share

• Long and Short Mechanics You can take either side of the trade:

  • Long (buy “Yes” shares): Profit if the outcome occurs

  • Short (sell “Yes” shares / buy the opposing side): Profit if the outcome does not occur Example: If you short 100 shares at $0.50 and the contract resolves to $0.00 (price below target), your profit is $0.50 × 100 = $50.

• Leverage Available Like Perps, Binary Contracts support leverage, allowing traders to amplify their exposure (subject to platform risk parameters and margin requirements).

In short, Binary Contracts let you trade directly on short-term price direction probabilities with fixed-expiry binary payoffs, full order-book liquidity for early exits, and the ability to go long or short..