Binary options have a fixed life term which is chosen by the trader at the time of purchasing the binary option contract. The expiry time is expressed as a date/time. The expiry time is the moment at which the trade contract ends. The strike price (the asset’s price when the trade was made) is compared to the expiry price (the asset’s price when the trade ends) to determine whether the trade contract gets paid out. Contracts are paid out each time the trader correctly predicts whether the asset’s expiry price ended up either higher or lower than the strike price.