DEFINITION of 'CashorNothing Put'
An exotic option whose payoff is a specified fixed price (sometimes equal to the strike price) if the underlying asset's price falls below the strike price; if not, the payoff is set to zero. A cashornothing put option is classified as a binary or digital option because the payout is either a set amount or nothing at all.
BREAKING DOWN 'CashorNothing Put'
A plain vanilla put option's payout, in contrast, is equal to the difference between the strike price and the market price when the option expires. Before the option expires, there is a wide range of possible payouts, not just two. An investor might buy a cashornothing put option instead of a plain vanilla put option if he or she thinks the underlying asset's price will fall short of a given level by only a small amount. The price of a cashornothing put option is based on the probability of the underlying asset's price falling below the strike price.

CashOrNothing Call
An exotic option whose payoff is a predetermined amount (sometimes ... 
AssetorNothing Put Option
An option payoff that is equal to the asset's price if the asset ... 
Digital Option
An option whose payout is fixed after the underlying stock exceeds ... 
Average Price Put
A type of option where the payoff depends on the difference between ... 
Average Price Call
A type of option where the payoff is either zero or the amount ... 
Vanilla Option
A financial instrument that gives the holder the right, but not ...

Trading
Want to Day Trade? Try Binary Options Or Spread Betting
Interested in Day Trading? These two derivative products are growing in popularity due to their profit potential and small trading capital required. 
Trading
Exploring The World Of Exotic Options
Exotic options provide investors with new alternatives to manage their portfolio risks and speculate on various market opportunities. The pricing for such instruments is considerably complex, ... 
Trading
Three Ways to Profit Using Put Options
A brief overview of how to profit from using put options in your portfolio. 
Trading
Getting Acquainted With Options Trading
Learn more about stock options, including some basic terminology and the source of profits. 
Trading
Profiting From Stock Declines: Bear Put Spread Vs. Long Put
If you're bearish, you should compare the risk/reward characteristics of these two strategies. 
Trading
Exotic Options: A Getaway From Ordinary Trading
Exotic options are like regular options, except that they have unique features that make them complex. These unusual investment vehicles can reignite your interest in trading. 
Trading
What's the Strike Price?
The strike price is the price at which a derivative can be exercised, and refers to the price of the derivative’s underlying asset. In a call option, the strike price is the price at which the ... 
Trading
Applying Binary Options To Equity Markets
A binary option payout depends on the outcome of a “yes” or “no” proposition, related to the difference between underlying asset price and strike price. 
Trading
How To Hedge Call Options Using Binary Options
Here is a stepbystep walk through how to hedge a long call position with binary options.

What's the difference between a regular option and an exotic option?
Before learning about exotic options, you should have a fairly good understanding of regular options. Both types of options ... Read Answer >> 
How do I set a strike price in a put?
Learn about put options, considerations to make before you select strike prices and how to select strike prices for your ... Read Answer >> 
When is a put option considered to be "in the money"?
Learn about put options, what they are, how these financial derivatives operate and when put options are considered to be ... Read Answer >> 
How does the term 'in the money' describe the moneyness of an option?
Find out what in the money means about the moneyness of call or put options and what it indicates about the relationship ... Read Answer >> 
How do I set a strike price for an option?
Learn about the strike price of an option and how to set a strike price for call and put options depending on risk tolerance ... Read Answer >> 
What is the difference between in the money and out of the money?
Learn about how the difference between in the money and out of the money options is determined by the relationship between ... Read Answer >>