What is Digital?

Digital options are the most popular type of binary options available today (based on cash-or-nothing option trading).

When trading above / below options, you have to determine whether the price of an asset will move above or below (higher or lower) a predetermined strike price by the time of expiration. For example,if a trader is trading on gold, they must determine if the price of gold will increase or decrease before the time of expiration, in this case in one hour.

After conducting some basic analysis, the trader decides that they think the price of gold will increase in one hour and they purchase a Call option.

On the other hand, if the trader decides that the price of gold will drop before the time of expiration, they will purchase a Put option.

From the onset, the trader knows how much money they can win or lose? This makes it easy for traders to manage their risk and calculate their gains

thoroughly before ever putting a penny on an option.

There are also many popular Digital strategies that investors and traders can learn in order to increase their chances of being in-the-money.