All About Digital Options Trading | Digital Option
15256
home,page,page-id-15256,page-template,page-template-full_width,page-template-full_width-php,ajax_fade,page_not_loaded,,qode-title-hidden,qode-theme-ver-9.1.3,wpb-js-composer js-comp-ver-4.11.2,vc_responsive

CurrenciesMore

CommoditiesMore

IndicesMore

StocksMore

Digital Option Definition

1. An option whose payout is fixed when the underlying assets exceeds a predetermined threshold or strike price.
2. Also referred to as “binary” or “all-or-nothing option”.

Digital Option Outcomes

So you’ve chosen your asset, selected an expiry time, entered the amount you want to invest, and approved your trade. Now what?

When investing with a digital option there are only three possible results when your position expires.

IN THE MONEY

IN THE MONEY

When a trader has correctly predicted the outcome of a digital option, his position is classified as “in the money”, and he / she will be rewarded with the predetermined payout (up to 81% on certain currency pairs).

OUT OF THE MONEY

OUT OF THE MONEY

When a trader is unable to correctly predict the outcome of a digital option, his position is classified as “out of the money”. An “out of the money” digital option provides no return for the trader.

AT THE MONEY

AT THE MONEY

When a digital option expires at exactly the same price as when it was opened, the position is classified as “at the money”. An “at the money” digital option is considered a tie, and the investment amount is returned to the trader.

Digital Option Advantages

Although digital option trading utilizes assets from the Foreign Exchange market, they are traded very differently to Forex. The price at which the option is exercised (the “strike price”), is determined from the spot rate of the asset in the Forex or Commodities market.

  • SIMPLE

  • FIXED RISK

  • NO FEES

  • DIVERSE PORTFOLIO

  • ACCESSIBLE

Digital Option Characteristics

Digital Options allow a trader to take advantage of market volatility on a broad range of products including Currencies, Commodities, Indices and Stocks. Digital Options are one of the fastest growing investment products for both retail and institutional investors.

EASY TO TRADE

FLEXIBLE

RISK MANAGEMENT

SHORT-TERM EXPIRIES

MULTIPLE OPPORTUNITIES

DIVERSIFIED PORTFOLIO

Digital Option Trading Tips

  • Understand the Market

  • Learn how to trade like a pro

  • Establish a Strategy

  • Understand the Assets

  • Manage your risk

Digital Option Strategies

The Reversal Strategy

The Opening / Gap Strategy

The Moving Averages Strategy