Digital options: useful information for traders

Ted Capwell

The development of the global financial market, changes in its structure, the emergence of new tools and promising areas for investment, as well as other transformations in this sector of the economy are occurring so rapidly that even professionals do not have time to follow what is happening. As a result, the study and classification of these processes often take the most unexpected forms, and their definitions can contradict each other, discouraging the desire to work in the financial markets from many failed traders. But there are also enterprising users of the world wide web who create various web resources, actively using new financial concepts, as well as the lack of accurate information about them, for personal enrichment. And although today, the following indicators are quite well known, not so long ago, they frightened average citizens:

● Binary and Digital options.

● Expiration time.

● Strike price.

● Hedging / trading risk management.

● Forex market and currency exchange for traders.

● “Kitchen” brokers.


Digital options in simple words


Digital options: definition and functions

One of the main problems of the modern financial market is the lack of precise definition of many categories of online trading. The fact that each country has its own laws governing the activities of financial markets and everything connected with them only aggravates the problem. Even some experienced brokers, after studying this topic, cannot explain what Digital is, classical or binary options, how they are interconnected, where they are used and what functions they perform.

The main difference of the presented object from other options is its high yield. In some cases, the trader can make a profit that is almost 10 times the original rate. If you do not delve into the technical nuances, then we can say that Digital options are a unique financial tool that allows you to conduct operations with various assets, combining the main advantages of binary and classical options.

The main instrument of Digital options is the strike price. The trader can choose the best option between risk and profitability of the transaction. Approaching the strike price to the current value of the asset, the trader reduces the amount of potential income, but the risk in this case will proportionally “fall”. Another way to increase the amount of profit, while reducing the probability of losing in parallel, is to do this by opening several options at the same expiration time.

The main features of Digital options (except for the above) include:

● Opening a bargain in advance, the trader significantly increases their chances of making money. But at the same time, his income will be lower, since in this case the risk of the financial operation in question is greatly reduced.

● If you see that before the expiration of the situation in the market will change for the worse for you, use your right to sell the option, while remaining in the “plus”.

● Digital options allow you to return part of the investment (in case of a failed transaction).

● At any time, the trader can fix the amount of profit, taking into account the market situation.

How to make money on digital options

The procedure for concluding a transaction using Digital options includes the following steps:

● The first thing you need to pay attention to choose the right asset. It is advisable to work with tools that you know well. Having information about what factors affect the value of your asset, the chances of a profitable operation will increase significantly. For example, serious political problems in the EU countries will lead to a depreciation of the euro, and the end of a quarter / year is almost always accompanied by a rise in the value of shares of large corporations (at this time, to raise the rating of companies, the financial results of their activities are overestimated).

● The next stage – the choice of the optimal amount of investment. It should not be too small (the profit in this case will be minimal), but you should not invest all your savings in one project.

● Determines the most effective strike price.

● Select “CALL” or “PUT”, the first option to predict an increase in the value of the asset, the second – to decrease.

● And at the last stage, the trader must wait for the expiration date of the chosen expiration date (but do not forget about the opportunity to sell the option at any time convenient for you).

The presented review of Digital Options will not be complete if you do not pay attention to brokers who provide ordinary citizens (traders) with the opportunity to work in financial markets.

How to choose a trading platform where Digital options are provided

One of the main problems of every novice trader is finding a decent broker who:

● does not set exorbitant prices for its services;

● does not ask for a huge amount as a first / minimum deposit;

● and necessarily fulfills all its obligations.

Unfortunately, many representatives of this business line often forget that they need to fulfill their obligations. And it is very pitiable for them. But how to avoid such situations?

The following recommendations will help you find the best brokerage company, with minimal risk of getting into the “network” of scammers.

● Be sure to check licenses, certificates and other documents confirming the legality of this business.

● Analyze financial conditions and economic indicators that the broker provides to the general public.

● Reviews, comments, blacklists and reviews to make decisions about the possibility of collaboration.

● Check the methods of depositing and withdrawing funds from the resource administrators, how long the transfer from your account to regular / electronic accounts takes, how much this service costs, how costs are distributed, etc.

The prepared information will help everyone who is interested in such things as Digital Options understand the algorithm of working on relevant web resources, which is one of the key factors for the realization of your ideas in the main segment of the entertainment industry.


“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”