Charles Schwab, Cboe to Launch S&P 500 Binary Options Contracts

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According to the Wall Street Journal, Charles Schwab is preparing to launch binary options contracts on the S&P 500 index in partnership with Cboe Global Markets, with plans to make the product available in coming months. The contracts allow customers to place yes-or-no wagers on where the index will close, paying fixed cash settlement if correct and nothing if the prediction is wrong. Schwab also plans to offer a version using Cboe's "plus zone" feature, which provides partial payouts when traders are close but not exactly on target. Reuters separately confirmed the partnership on June 19.
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