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

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According to The Wall Street Journal, Charles Schwab is partnering with Chicago-based Cboe Global Markets to launch binary options contracts on the S&P 500 index, allowing clients to make "yes or no" bets on index performance. The contracts pay fixed cash settlements if the index closes above or below target prices, or zero otherwise. Schwab will simultaneously introduce Cboe's "Plus Zone" feature, which provides partial payouts even if predictions are directionally correct but miss the exact target. The offerings will be limited to financially verifiable events and will not include non-financial markets such as sports or entertainment.
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