Binary options are mostly used in currency transactions to minimise the exchange rate risk.
 

However, a significant proportion of binary options are issued on listed companies or raw materials traded on commodity exchanges. It should be kept in mind that when purchasing an option the buyer pays the issuer a premium. The amount of the premium constitutes the buyer’s cost and the issuer’s income.
 

Generally, binary options offer investors the following benefits:

 
• reduced exchange rate risks;
• the amount of security is limited to the amount of premium paid at the moment of transaction,
• possibility of an early resale of the option to the bank (e.g. in order to liquidate the security or to take profit on a hedging position before the expiration of the option).