Financy Glossary
The online dictionary of financial terms

Digital options are a type of options that is used to earn large profits from small market movements. They allow you to earn a lot of money in any market. It does not matter if you are trade in a bull, bear or stagnate market. You can always make a lot of money.

It is easier to make money in a bull or bear market but a skilled trader will be able to find a lot of opportunities to make money trading digital options in a stagnate market as well.

The biggest benefit of digital options is that you get the same high return regardless of how much an asset increase or decrease in value as long as you are able to predict the assets movement. You can make close to 100% return even if the asset only increase or decrease 0.1% in value.

What are digital options

digital optionsDigital options are financial instruments based on an asset. An option can be based on any publicly traded asset. With this said, digital options are usually based on popular stocks in large companies, currency pairs, important commodities such as gold, silver and oil and different indices. It is the publicly traded asset that governs the digital option and it is the market value of the assets that dictates if the option matures in the money or not.

How does it work

Your goal when trading with digital options is to skillfully pick and invest in options that correctly predicts the future value of an asset. You can buy an option that predicts that the value of Apple stock will be higher in 10 minutes than what it is now. If this turns out to be true then the option matures in the money and you earn money. The key to being able to make money when trading with digital options is to be able to predict the market movements of the assets.

If the value of Apple is down in 10 minutes then your option will be worthless and you will have lost whatever you paid for it.

Where can I trade digital options?

There are a number of different brokers out there that allow you to trade digital options. The most popular one is IQ option. They allow you to trade with a large selection of Digital options including cryptocurrency based digital options.

Can I buy digital options based on any asset?

No. The broker decides which options they want to offer to their traders and which assets they want to base them on. Some brokers offer a wide selection of different assets while others only offer options based on a low number of assets or a single class of assets such as stocks or commodities.

The most popular digital options are currency based options.

Can you make money trading digital options

Yes. It is possible to make a lot of money while trading digital options. However digital options are a high risk investment and you risk losing a lot money. You will need to spend a lot of time analyzing the markets and assets you trade to be able to be successful. Digital options are not an easy way to make money. But they are a good way to make a lot of money if you are willing to work hard to become successful.

Never invest money that you can not afford to lose in digital options.