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A Guide To Trading Binary Options In The U. S. Investopedia If you think the index will be above ,784 at 11 a.m., you buy the binary option at (or place a bid at a lower price and hope someone sells to you at that price). Mar 17, 2016. Binary options are based on a simple 'yes' or 'no' proposition Will an underlying. Thus each binary option has a total value potential of 0, and it is a. A protection against the loss of income that would result if the insured.