Exchange-Traded Binary Options

See: Exchange-Traded Fund (ETF).

We at Shmoop are not one to judge the leanings of a derivative one way or another. The most important aspect of any given trade on an exchange is that a derivative is happy. So whether the option heads in one direction or the other, that's totally cool with us.

In this case, the term simply refers to relatively simple options freighted on a given exchange. Think: the trading pits of Goldman, Morgan, UBS, and the others as tracked copiously by Bloomberg, who is happy to lean either way, as long as they collect your monthly subscription fee.