Charles Schwab Launches S&P 500 Binary Options Contracts with Cboe

SPX500-0.02%
According to the Wall Street Journal, Charles Schwab is launching binary options contracts on the S&P 500 index in partnership with the Chicago Board Options Exchange (Cboe). The contracts allow clients to make yes-or-no predictions on index performance, with fixed cash settlement if the index closes above or below a target price, and zero payout otherwise. The brokerage will also introduce Cboe's "Plus Zone" feature, enabling partial payouts even when predictions are directionally correct but do not precisely hit the target. Unlike sports or entertainment event contracts, these offerings will be strictly limited to financially verifiable events.
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