The quest for optical identification of X-ray sources has revealed a new class of variables currently formed by AM Her, AN UMa, VV Pup, and the most recent member, 2A 0311-227 (for which a variable star designation will be available soon). These objects show many of the variations common to close binary systems where mass transfer is under way. However, they are distinguished by the high degree (10 to 35 %) of linear and circular polarization observed in the optical and near infrared spectral regions. Apparently the polarization is due to cyclotron emission of electrons located in a region where the magnetic field strength is about 108 gauss.