binary payoff
[ˈbaɪ.ner.i ˈpeɪ.ɔːf]
nounpl: binary payoffs
payoff binário
1. A financial outcome in options trading where the payoff is limited to two possible results: a fixed gain or a fixed loss, with no intermediate values
In a binary option, the trader faces a binary payoff: either win the predetermined amount or lose their investment.
Em uma opção binária, o trader enfrenta um payoff binário: ou ganhar o valor predeterminado ou perder seu investimento.
2. In game theory and economics, a situation where each player or participant receives one of exactly two possible outcomes
The strategic game had a binary payoff structure where each player either succeeded completely or failed entirely.
O jogo estratégico tinha uma estrutura de payoff binária onde cada jogador ou tinha sucesso completo ou fracassava totalmente.
Binary payoff is predominantly a technical term used in financial markets and academic settings, particularly prevalent in discussions of derivatives trading and game theory. It reflects the modern finance industry's preference for structured, mathematically defined outcomes. In Brazil, this terminology is increasingly used as the financial market matures and options trading becomes more accessible.
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