Charles Schwab to Enter Prediction Market, Offering S&P 500-Linked Binary Options Within Months

Schwab Enters Prediction Market

Leading US brokerage firm Charles Schwab, in collaboration with major derivatives exchange Cboe, plans to offer its customers binary options contracts linked to the movements of the S&P 500 index. This development was reported on the 19th by The Wall Street Journal (WSJ), citing sources familiar with the matter.

Binary options, also known as all-or-nothing options, are contracts where the payout is determined by whether the index's closing price is above or below a pre-set target price at expiration...