A binary switch in the context of trading or investing often refers to a mechanism that allows investors to take one of two distinct actions or positions. In cryptocurrency trading, this typically means the ability to choose between buying or selling an asset based on specific conditions.

For example, a trader may set up a binary switch in their trading interface to automatically execute a buy order when the price hits a certain low level and a sell order when it reaches a high level. This helps in managing trades effectively and taking advantage of price fluctuations without constant monitoring.

Binary switches can also relate to options trading, where an investor must choose between two outcomes—returning a profit if the price move is favorable or losing the initial investment if it is not. By utilizing binary switches, traders can implement strategies that suit their risk tolerance, enabling a more structured approach to trading decisions.