Binary (Digital) Option Pricing Calculator
Fair value of a cash-or-nothing digital option — e^(−rT)·N(d₂) — for teaching event-probability pricing.
Formula
Digitals are pure probability bets, which is why regulators (SEBI, ESMA, FCA) ban retail binary-option platforms — typical platform pricing embeds 5-15% edge over this fair value. The math here is for education and exotic-desk intuition, not for betting.
Educational pricing model only. Retail binary-options platforms are banned in many jurisdictions including India and the UK. Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need binary option pricing calculator results fast? Analysts, founders, traders and finance professionals use the Binary Option Pricing Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Binary (Digital) Option Pricing Calculator
Fair value of a cash-or-nothing digital option — e^(−rT)·N(d₂) — for teaching event-probability pricing. Digitals are pure probability bets, which is why regulators (SEBI, ESMA, FCA) ban retail binary-option platforms — typical platform pricing embeds 5-15% edge over this fair value. The math here is for education and exotic-desk intuition, not for betting. The governing relationship is digital call = payout × e^(−rT) × N(d₂). The Binary Option Pricing Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Binary (Digital) Option Pricing Calculator
- 1Enter Spot price, Strike / event level, Volatility (%), Risk-free rate (%), Days to expiry, Fixed payout if ITM into the Binary Option Pricing Calculator.
- 2The result is computed automatically using digital call = payout × e^(−rT) × N(d₂) — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Binary (Digital) Option Pricing Calculator?
- ✓Computes binary option pricing calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Binary Option Pricing Calculator?+
Binary Option Pricing Calculator uses digital call = payout × e^(−rT) × N(d₂). Digitals are pure probability bets, which is why regulators (SEBI, ESMA, FCA) ban retail binary-option platforms — typical platform pricing embeds 5-15% edge over this fair value. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Binary Option Pricing Calculator need?+
Enter Spot price, Strike / event level, Volatility (%), Risk-free rate (%), Days to expiry, Fixed payout if ITM and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Binary Option Pricing Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. Educational pricing model only. Retail binary-options platforms are banned in many jurisdictions including India and the UK. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Binary Option Pricing Calculator?+
The math here is for education and exotic-desk intuition, not for betting.
What is the Binary Option Pricing Calculator based on?+
The method follows authoritative sources: Hull — binary options; SEBI/FCA retail prohibitions. The formula and references are shown on the page so you can verify and cite the result.
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