Binary options, otherwise known as Digital options or just Binaries or Digitals, are one of the primitive option types. Digital calls are sometimes called Digicalls and digital puts Digiputs.

Any financial scaling is usually done via the Notional value of the trade. Investors in, for example, binary calls expect a modest rise in the underlying price, but since the payout can never rise beyond 1, the price of the derivative is much cheaper than a standard call set interactive brokers options exercise the same strike.

put call parity [Archive] - Actuarial Outpost

Similarly a binary put investor will expect a modest decrease in the price of the underlying. Usually digitals are used digital option put call parity conjunction with more digital option put call parity derivatives to indicate a cash flow occuring conditional on some price level.

Binary option - Wikipedia

One can approximate a digicall by means of a call spread, long one call just below the strike and short one call just above the strike. In the limit, as the distance above and below the strike tends to zero, the approximation becomes exact.

Put–call parity - Wikipedia

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