Binary put option

From Binary Options Trading Wiki

A Binary put option is a contract that gives the holder a specified amount if the Underlying asset is below the strike at expiration. A binary put option is the opposite to a Binary call option, its used when the trader believes the he should sell on the belief that the asset price is going to go down. A trader will sell a put contract when he perceives there to be a bear market and/or has a short strategy. A binary put option will settle on a predetermined fixed cash settlement at contract expiration if the expiry price is at below or equal to the strike price . If the strike price is above the expiry price then there will be no payout.