> For the complete documentation index, see [llms.txt](https://docs.dmex.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dmex.app/binary-contracts.md).

# 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.