Digital Option
An option whose payout is fixed after the underlying stock exceeds the predetermined threshold or strike price.
Also referred to as "binary" or "all-or-nothing option." ...
European Digital Option
European Digital with Double Knock Out Option
European Digital with European Knock In Option ...
Digital Option A Binary Option (q.v.). Direct Credit Substitute The Federal Reserve Board's term for a credit enhancement, that is, a means of improving the credit quality of a loan or a bond.
In the popular Black-Scholes model, the value of a digital option can be expressed in terms of the cumulative normal distribution function.
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Binary options are a form of trading and one of the newest options on the block. They are also known as digital options and are relatively easy to use when you know what you are doing.
Option: A type of option whose payoff is either a fixed amount or zero. For example, there could be a binary option that pays $100 if a hurricane makes landfall in Florida before a specified date and zero otherwise. Also called a digital option.
Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), ...
 See also: Option, Options, Stock, Market, Future
  
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