Binary Options = Online Baccarat
A binary option is a speculative financial product where the parties involved in the transaction are assigned one of two outcomes based on whether the option expires in the money (Investopedia definition). The term binary comes from the meaning of having 2 outcomes 0 and 1.
An example of it can be people can bet that share price of Tesla will be above $170 on Jan 25, 2023. If the person buys the option and the share price of Tesla stays above $170, he will win the option, if not he loses everything.
Binary options are basically like choosing the Player Banker in a Baccarat game. There's a lot of illegally operated websites offering so called binary options which are not regulated and some are even down right scams which will not give any payouts when withdrawals are attempted. Playing with binary options is not different from going to the casino, the odds are controlled based on the option statement created by the issuer. It's confirmed not Shariah compliant as it has gambling elements in it.
Binary options are less common now that there are better speculative options like Defi, NFTs and Altcoins.