In view of options trading, the “digital option” is now a popular trading option among the traders due to its various options to make the trade less risky. Digital options are now available with some selected brokers like IQ Option. You can now trade digital option on both the web and mobile applications of IQ Option. So it’s time to take a closer look at this financial instrument & take benefit out of it.
What are digital options?
Digital Option Advantage
Higher Profitability (*Amount to be credited to account in case of successful trade): Up to 900 percent profit in case of sharp price movement in your favor.
More Flexibility: Sell the option at any point to reduce loss.
Strike Price: Varied strike price option allows for risk management.
While both types of options are based on asset or nothing option formula, the main difference between Binary Options and Digital Options is the presence of strikes. The strike can be understood as the market entry point. For example, in binary options, a strike is always the price or position of the chart for the current moment, whereas in Digital options you can choose the most profitable strike level yourself.
Start Trading Digital Option With IO Option Now!
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK.
How do Digital Options work?
At any given time, you have 22 different strikes to choose from. Note that the number of strikes displayed on the platform may vary depending on the scale of the chart and the situation on the market. The yield in Digital options is directly dependent on risks, so the maximum profit on this instrument is increased to 900%.
The ability to purchase multiple options for one expiration time, along with a lot of strikes, opens up a huge number of opportunities for the trader. As for example, with the help of digital options, it is possible to open positions in advance. This allows you to enter the market with a clearly successful position, but with a smaller percentage of profit due to understated risks compared to conventional options. Some time traders refer to it as the double digital option.
In the digital options, the trader, as always, has the opportunity to sell his position before expiration (but not later than 20 seconds before the end of the transaction), and, depending on the current price, either receive profit or claim back some of the invested funds.
Start Trading Digital Option With IO Option Now!
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK RISK
First of all, click the listed trading instrument, choose “digital options” as your trading instrument & then select the asset you like to trade. Notice how the chart is accompanied by several parallel lines which are called strikes. Target price level set the market is supposed to either surpass or stay below.
Take on the strike price you believe to be achievable. You will see the profitability (*Amount to be credited to account in case of successful trade) of both digital call option and put option change accordingly in real time. This way you are able to evaluate potential profit and risk at a glance. Keep in mind, the more attainable the strike price the lower the profit is going to be and vice versa. A single digital option pricing can generate up to 900 percent of profit if the price of the underlying asset moving steadily in your favor.
You don’t have to wait for the option to expire, just click “sell the option” at any point to either secure your profit or cut losses. This feature giving you more flexibility managing the outcome. You can purchase multiple digital options of the same asset at various strike prices. This can give you the ability to experiment different strategy to maximize profit & lower the risk.
We wish you a pleasant digital options trading experience with IQ Option.
Start Trading Digital Option With IO Option Now!
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK RISK
