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What are Digital Options?

Digital options are one of the easiest and fastest growing financial markets in the world today. Billions are traded daily in this market via Stock exchanges and online digital options brokers. Digital options enable a trader to open a trade that is based on very simple parameters that are fixed in advance.  As opposed to trading forex or stocks where you need to pick a direction and then are open to the variables of the market; with digital options once you choose the direction of the trade – you already know what you will earn in advance. You already know what your total investment is as well.

In forex trading you don’t know how much you will gain. You don’t know how much you can lose. With digital options these variables are decided before even opening the trade and as such digital options eliminate a lot of the guess work involved in trading. So instead of having to know both the direction of the market and the stop point, time needed to realize profit, how much is the right amount of profit, volatility, and many other variables needed to fully grasp in order to be successful at forex or stock trading – all you need to choose is the direction and how long you want the option to stay opened.

The digital option will remain open for the life of the “expiry. You choose this in advance with digital options and in addition you can see the payout % available on each digital option. Meaning you see the actual amount you will earn if the digital option reaches expiry above or below the market, depending on your decision to take either an above or a below digital option.

Digital options are called digital because they are based on the idea of how a digital image or character a printed on a screen. Meaning, digital means a technology that effectively turns on or off a light that later is translated into a series of lights that when on or off create a recognized image that our eye can understand. So basically, digital options means on or off. So when something is digital it is also known as binary – again meaning it’s either on or off. With digital options on or off are translated into right or wrong. This is the case because there is no middle ground. With a stock trade you can be right but there is also an issue of depth or rather how right am I? With digital option, once you are right, the financial result is already known in advance making digital options a very easy means of trading financial instruments.

You can trade forex, commodities, stocks, and stock indices with digital options. You can trade digital options with an expiry as low as 60 seconds and as high as end-of-month digital options. 

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